General Math LM For SHS

PY
General
Mathematics
C
O
Learners Material
EP
E
This learning resource was collaboratively developed and

reviewed by educators from public and private schools, colleges, and/or
universities. We encourage teachers and other education stakeholders
to email their feedback, comments and recommendations to the
Department of Education at [email protected].
We value your feedback and recommendations.
Department of Education
Republic of the Philippines
All rights reserved. No part of this material may be reproduced or transmitted in any form or by any means electronic or mechanical including photocopying without written permission from the DepEd Central Office. First Edition, 2016.
General Mathematics
Learners Material
First Edition 2016
Republic Act 8293. Section 176 states that: No copyright shall subsist in any work
of the Government of the Philippines. However, prior approval of the government agency or
office wherein the work is created shall be necessary for exploitation of such work for profit.
Such agency or office may, among other things, impose as a condition the payment of
royalties.
PY
Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
trademarks, etc.) included in this learning resource are owned by their respective copyright
holders. DepEd is represented by the Filipinas Copyright Licensing Society (FILCOLS), Inc.
in seeking permission to use these materials from their respective copyright owners. All
means have been exhausted in seeking permission to use these materials. The publisher
and authors do not represent nor claim ownership over them.
C
O
Only institutions and companies which have entered an agreement with FILCOLS
and only within the agreed framework may copy from this Learners Material. Those who
have not entered in an agreement with FILCOLS must, if they wish to copy, contact the
publishers and authors directly.
Authors and publishers may email or contact FILCOLS at [email protected] or (02)
435-5258, respectively.
Published by the Department of Education

Secretary: Br. Armin A. Luistro FSC
Undersecretary: Dina S. Ocampo, PhD
EP
E
Development Team of the General Mathematics Learners Material

Dr. Debbie Marie B. Verzosa
Francis Nelson M. Infante
Paolo Luis Apolinario
Jose Lorenzo M. Sin
Regina M. Tresvalles
Len Patrick Dominic M. Garces
Reviewers
Leo Andrei A. Crisologo
Lester C. Hao
Shirlee R. Ocampo
Eden Delight P. Miro
Jude Buot
Eleanor Villanueva
Cover Art Illustrator
Quincy D. Gonzales
Layout Artist
Mary Ann A. Mindaa
Management Team of the General Mathematics Learners Material

Bureau of Curriculum Development
Bureau of Learning Resources
Printed in the Philippines by Lexicon Press Inc.

Department of Education-Bureau of Learning Resources (DepEd-BLR)
Office Address: Ground Floor Bonifacio Building, DepEd Complex
Meralco Avenue, Pasig City, Philippines 1600
Telefax:
(02) 634-1054 or 634-1072
E-mail Address: [email protected]
ii
TABLE OF CONTENTS
I.
Functions
Lesson 1: Functions............................................................................................. 1
Lesson 2: Evaluating Functions ......................................................................... 10
Lesson 3: Operations on Functions ................................................................... 13
PY
II.
Rational Functions
Lesson 4: Representing Real-Life Situations Using Rational Functions ............. 21
Lesson 5: Rational Functions, Equations, and Inequalities ................................ 24
Lesson 6: Solving Rational Equations and Inequalities ...................................... 25
Lesson 7: Representations of Rational Functions .............................................. 35
Lesson 8: Graphing Rational Functions ............................................................. 44
C
O
III.
One-to-One Functions
Lesson 9: One-to-One functions ........................................................................ 60
Lesson 10: Inverse of One-to-One Functions..................................................... 62
Lesson 11: Graphs of Inverse Functions............................................................ 67
EP
E
IV.
Exponential Functions
Lesson 12: Representing Real-Life Situations Using Exponential Functions ...... 77
Lesson 13: Exponential Functions, Equations, and Inequalities ......................... 82
Lesson 14: Solving Exponential Equations and Inequalities............................... 83
Lesson 15: Graphing Exponential Functions ...................................................... 88
Lesson 16: Graphing Transformations of Exponential Functions ....................... 92
Logarithmic Functions
Lesson 17: Introduction to Logarithms ............................................................... 99
Lesson 18: Logarithmic Functions, Equations, and Inequalities ....................... 103
Lesson 19: Basic Properties of Logarithms ...................................................... 104
Lesson 20: Laws of Logarithms ....................................................................... 106
Lesson 21: Solving Logarithmic Equations and Inequalities ............................. 111
Lesson 22: Graphing Logarithmic Functions .................................................... 124
Lesson 23: Illustrating Simple and Compound Interest ................................... 135
V.
iii
VI.
Simple and Compound Interest
Lesson 24: Simple Interest .............................................................................. 137
Lesson 25: Compound Interest ....................................................................... 144
Lesson 26: Compounding More than Once a Year .......................................... 150
Lesson 27: Finding Interest Rate and Time in Compound Interest .................. 158
PY
VII.
Annuities:
Lesson 28: Simple Annuity .............................................................................. 168
Lesson 29: General Annuity ............................................................................ 183
Lesson 30: Deferred Annuity ........................................................................... 199
C
O
VIII.
Basic Concepts of Stocks and Bonds
Lesson 31: Stocks and Bonds ......................................................................... 208
Lesson 32: Market Indices for Stocks and Bonds ............................................ 217
Lesson 33: Theory of Efficient Markets............................................................ 222
EP
E
Logic
Lesson 36: Propositions .................................................................................. 240
Lesson 37: Logical Operators.......................................................................... 246
Lesson 38: Truth Tables .................................................................................. 257
Lesson 39: Logical Equivalence and Conditional Propositions ........................ 263
Lesson 40: Valid Arguments and Fallacies ...................................................... 270
Lesson 41: Methods of Proof ........................................................................... 283
X.
IX.
Basic Concepts of Loans
Lesson 34: Business and Consumer Loans .................................................... 225
Lesson 35: Solving Problems on Business and Consumer Loans .................. 226
iv
Lesson 1: Functions
Learning Outcome(s): At the end of the lesson, the learner is able to represent reallife situations using functions, including piecewise functions.
Lesson Outline:
1. Functions and Relations
2. Vertical Line Test
PY
3. Representing real-life situations using functions, including piecewise functions.
Definition: A relation is a rule that relates values from a set of values (called the
domain) to a second set of values (called the range).
A relation is a set of ordered pairs (x,y).
C
O
Definition: A function is a relation where each element in the domain is related to

only one value in the range by some rule.
A function is a set of ordered pairs (x,y) such that no two ordered pairs have the
same x-value but different y-values. Using functional notation, we can write f(x) = y,
read as f of x is equal to y. In particular, if (1, 2) is an ordered pair associated with
the function f, then we say that f(2) = 1.
EP
E
Example 1. Which of the following relations are functions?
Solution.
The relations f and h are functions because no two ordered pairs have the
same x-value but different y-values. Meanwhile, g is not a function because (1,3) and
(1,4) are ordered pairs with the same x-value but different y-values.
Relations and functions can be represented by mapping diagrams where the
elements of the domain are mapped to the elements of the range using arrows. In
this case, the relation or function is represented by the set of all the connections
represented by the arrows.
1
Example 2. Which of the following mapping diagrams represent functions?
Solution.
C
O
PY
EP
E
The relations f and g are functions because each value y in Y is unique for a specific
value of x. The relation h is not a function because there is at least one element in X
for which there is more than one corresponding y-value. For example, x=7
corresponds to y = 11 or 13. Similarly, x=2 corresponds to both y=17 or 19.
A relation between two sets of numbers can be illustrated by a graph in the Cartesian
plane, and that a function passes the vertical line test.
The Vertical Line Test

A graph represents a function if and only if each vertical line intersects the graph at
most once.
2
Example
3.
Which
of
the
following
can
be
graphs
of
functions?
PY
a.)
b.)
EP
E
C
O
e.)
c.)
d.)
Solution.
Graphs a.), b.), c.) are graphs of functions while d.) and e.) are not because they
do not pass the vertical line test.
3
Important Concepts.
Relations are rules that relate two values, one from a set of inputs and
the second from the set of outputs.
Functions are rules that relate only one value from the set of outputs to a
value from the set of inputs.
Definition: The domain of a relation is the set of all possible values that the
variable x can take.
Example 4. Identify the domain for each relation using set builder notation.
PY
(a)
(b)
(c)
(d)
(e)
where
is the greatest integer function.
C
O
(f)
Solution. The domains for the relations are as follows:

(d)
(e)
(f)
(a)
(b)
(c)
Functions as representations of real-life situations.
EP
E
Functions can often be used to model real situations. Identifying an appropriate

functional model will lead to a better understanding of various phenomena.
Example 5. Give a function C that can represent the cost of buying x meals, if
one meal costs P40.
Solution. Since each meal costs P40, then the cost function is C(x) = 40x.
Example 6. One hundred meters of fencing is available to enclose a rectangular

area next to a river (see figure). Give a function A that can represent the area
that can be enclosed, in terms of x.
RIVER
y
x
Solution. The area of the rectangular enclosure is A = xy. We will write this as a
function of x. Since only 100 m of fencing is available, then x + 2y = 100 or
y = (100 x)/2 = 50 0.5x. Thus, A(x) = x(50 0.5x) = 50x 0.5x2.
4
Piecewise functions.
Some situations can only be described by more than one formula, depending on
the value of the independent variable.
Example 7. A user is charged P300 monthly for a particular mobile plan, which
includes 100 free text messages. Messages in excess of 100 are charged P1
each. Represent the monthly cost for text messaging using the function t(m),
where m is the number of messages sent in a month.
PY
Solution. The cost of text messaging can be expressed by the piecewise

function:
C
O
Example 8. A jeepney ride costs P8.00 for the first 4 kilometers, and each
additional integer kilometer adds P1.50 to the fare. Use a piecewise function to
represent the jeepney fare in terms of the distance (d) in kilometers.
EP
E
Solution. The input value is distance and the output is the cost of the jeepney
fare. If F(d) represents the fare as a function of distance, the function can be
represented as follows:
Note that
is the floor function applied to d. The floor function gives the largest
integer less than or equal to d, e.g.
.
Example 9. Water can exist in three states: solid ice, liquid water, and gaseous
water vapor. As ice is heated, its temperature rises until it hits the melting point of
0C and stays constant until the ice melts. The temperature then rises until it hits
the boiling point of 100C and stays constant until the water evaporates. When
the water is in a gaseous state, its temperature can rise above 100C (This is
why steam can cause third degree burns!).
A solid block of ice is at -25C and heat is added until it completely turns into
water vapor. Sketch the graph of the function representing the temperature of
water as a function of the amount of heat added in Joules given the following
information:
The ice reaches 0C after applying 940 J.
The ice completely melts into liquid water after applying a total of 6,950 J.
5
The water starts to boil (100C) after a total of 14,470 J.

The water completely evaporates into steam after a total of 55,260 J.
Assume that rising temperature is linear. Explain why this is a piecewise function.
C
O
PY
Solution. Let T(x) represent the temperature of the water in degrees Celsius as
a function of cumulative heat added in Joules. The function T(x) can be graphed
as follows:
EP
E
This is a piecewise function because the temperature rise can be expressed as a

linear function with positive slope until the temperature hits 0C, then it becomes
a constant function until the total heat reaches 6,950K J. It then becomes linear
again until the temperature reaches 100C, and becomes a constant function
again until the total heat reaches 55,260 J.
Solved Examples
1. Is the relation {(0,0), (1,1), (2,4), (3,9), (
), } a function?
Solution.
Yes, it is a function.
6
C
O
PY
2. Which of the following diagram represents a relation that is NOT a function?
Solution.
C. All diagrams, except for C, represent a function.
Solution.
3. Can the graph of a circle be considered a function?
EP
E
No, it cannot. A circle will fail the vertical line test.
4. Give the domain of
using set builder notation.
Solution.
5. Contaminated water is subjected to a cleaning process. The concentration of

pollutants is initially 10 mg per liter of water. If the cleaning process can reduce
the pollutant by 5% each hour, define a function that can represent the
concentration of pollutants in the water in terms of the number of hours that the
cleaning process has taken place.
Solution. After 1 hour, the concentration of pollutants is (10)*(0.95). After 2

hours, it is this value, times 0.95, or [(10)*(0.95)](0.95) = 10(0.95) 2. In general,
after t hours, the concentration is C(t) = (10)(0.95)t mg per liter of water.
7
6. Squares of side x are cut from each corner of an 8 in x 5 in rectangle (see

figure), so that its sides can be folded to make a box with no top. Define a
function in terms of x that can represent the volume of this box.
8 inches
x
PY
5 inches
Solution. The length and width of the box are 8 2x and 5 2x, respectively.
Its height is x. Thus, the volume of the box can be represented by
the function
C
O
V(x) = (8 2x)(5 2x)x = 40x 26x2 + 4x3.
EP
E
Solution.
7. A certain chocolate bar costs P35.00 per piece. However, if you buy more than
10 pieces, they will be marked down to a price of P32.00 per piece. Use a
piecewise function to represent the cost in terms of the number of chocolate
bars bought.
8. A schools fair committee wants to sell t-shirts for their school fair. They found
a supplier that sells t-shirts at a price of P175.00 a piece but can charge
P15,000 for a bulk order of 100 shirts and P125.00 for each excess t-shirt after
that. Use a piecewise function to represent the cost in terms of the number of tshirts purchased.
Solution.
9. The fee to park in the parking lot of a shopping mall costs P40.00 for the first
two hours and an extra P10.00 for each hour (or a fraction of it) after that. If you
park for more than twelve hours, you instead pay a flat rate of P200.00.
Represent your parking fee using the function p(t) where t is the number of
hours you parked in the mall.
8
Solution.
Here
is the ceiling function applied to t 2. The ceiling function of a
number x gives the smallest integer greater than or equal to x,
e.g.
PY
Lesson 1 Supplementary Exercises

1. For which values of k is the set of order pairs
a function?
C
O
2. Which of the following statements represents a function?

(a) Students to their current age.
(b) Countries to its capital.
(c) A store to its merchandise.
3. Which of the following letters will pass the vertical line test? V W X Y Z
in set builder notation.
5. A person is earning P600 per day to do a certain job. Express the total salary
S as a function of the number n of days that the person works.
EP
E
6. A canned drink will be made using 40 in2 of aluminum. Let r be the radius of
the can and let h be the height. Define a function in terms of r that can
represent the volume of the can.
7. A computer shop charges 20 pesos per hour (or a fraction of an hour) for the
first two hours and an additional 10 pesos per hour for each succeeding hour.
Represent your computer rental fee using the function R(t) where t is the
number of hours you spent on the computer.
8. A taxi ride costs P40.00 for the first 500 meters, and each additional 300
meters (or a fraction thereof) adds P3.50 to the fare. Use a piecewise function
to represent the taxi fare in terms of the distance d in meters.
9. Temperature readings T (in C) were recorded every three hours from
midnight until 6 PM. The time t was measured in hours from midnight.
T
0
3
6
9
12
15
18
T
24
26
28
30
32
30
28
(a) Use the data to sketch a rough graph of T as a function of t.
(b) Assuming that the peak temperature was recorded during 12 noon, what
do you think is the temperature by 9 PM?
9
Lesson 2: Evaluating Functions

Learning Outcome(s): At the end of the lesson, the learner is able to evaluate
functions and solve problems involving functions.
.
Lesson Outline:
1. Evaluating functions
PY
Evaluating a function means replacing the variable in the function, in this case
x, with a value from the function's domain and computing for the result. To
denote that we are evaluating f at a for some a in the domain of f, we write f(a).
(g)
(h)
(i)
(j)
(k)
, where
C
O
Example 1. Evaluate the following functions at x = 1.5:
is the greatest integer function.
(d)
(e)
EP
E
(a)
(b)
(c)
Solution. Substituting 1.5 for x in the functions above, we have
Example 2. Find g( 4) and r(1) where g and r are as defined in the previous
example.
Solution. This is not possible because

not in the domain of r(x).
4 is not in the domain of g(x) and 1 is
Example 3. Evaluate the following functions, where f and q are as defined in

Example 1.
Solution.
10
Solved Examples
1. Evaluate the following functions at x=3.
(a)
(b)
(c)
(d)
(e)
where |x 5| means the absolute value of x 5.
Solution.
PY
(a)
(b)
(c)
C
O
(d)
(e)
2. For what values of x can we not evaluate the function

Solution.
where
EP
E
3. Evaluate
The domain of the function is given by

. Since 2 and -2 are
not in the domain, we cannot evaluate the function at x = -2,2.
Solution.
4. Suppose that s(T) is the top speed (in km per hour) of a runner when the
temperature is T degrees Celsius. Explain what the statements s(15) = 12
and s(30) = 10 mean.
Solution. The first equation means that when the temperature is 15C, then the
top speed of a runner is 12 km per hour. However, when temperature rises to
30C, the top speed is reduced to 10 km per hour.
5. The velocity V (in m/s) of a ball thrown upward t seconds after the ball was
thrown is given by V(t) = 20 9.8t. Calculate V(0) and V(1), and explain what
these results mean.
Solution. V(0) = 20 9.8(0) = 20 and V(1) = 20 9.8(1) = 10.2. These results

indicate that the initial velocity of the ball is 20 m/s. After 1 second, the ball is
traveling more slowly, at 10.2 m/s.
11

1. Evaluate the following functions at
(a)
(b)
(c)
(d)
2. Given
, give the values of the following:
. Solve for
the same as
C
O
3. Given
(a)
(b)
Is
PY
(a)
(b)
(c)
(d)
(e)
EP
E
4. A computer shop charges P20.00 per hour (or a fraction of an hour) for the first
two hours and an additional P10.00 per hour for each succeeding hour. Find
how much you would pay if you used one of their computers for:
(a) 40 minutes
(b) 3 hours
(c) 150 minutes
5. Under certain circumstances, a rumor spreads according to the equation
where p(t) is the proportion of the population that knows the rumor (t) days
after the rumor started. Find p(4) and p(10), and interpret the results.
12
Lesson 3: Operations on Functions

Learning Outcome(s): At the end of the lesson, the learner is able to perform
addition, subtraction, multiplication, division, composition of functions, and solve
problems involving functions.
Lesson Outline:
PY
1. Review: Operations on algebraic expressions

2. Addition, subtraction, multiplication, and division of functions
3. Function composition
C
O
Addition and Subtraction:

(a) Find the least common denominator (LCD) of both fractions.
(b) Rewrite the fractions as equivalent fractions with the same LCD.
(c) The LCD is the denominator of the resulting fraction.
(d) The sum or difference of the numerators is the numerator of the resulting
fraction.
Example 1. Find the sum of and .
Solution. The LCD of the two fractions is 15.
EP
E
Example 2. Find the sum of
and
.
or
Solution. The LCD of the two fractions is
Multiplication:
(a) Rewrite the numerator and denominator in terms of its prime factors.
(b) Common factors in the numerator and denominator can be simplified as 1
(this is often called cancelling).
(c) Multiply the numerators together to get the new numerator.
(d) Multiply the denominators together to get the new denominator.
Example 3. Find the product of
convenient.
and
. Use cancellation of factors when
Solution. Express the numerators and denominators of the two fractions into
their prime factors. Multiply and cancel out common factors in the numerator and
the denominator to reduce the final answer to lowest terms.
13
Example 4. Find the product of
and
C
O
PY
Solution. Express the numerators and denominators of the two rational

expressions into their prime factors. Multiply and cancel out common factors in
the numerator and the denominator to reduce the final answer to lowest terms.
Note the similarity in the process between this example and the previous one on
fractions.
by
EP
E
Example 5. Divide
.
Division:
To divide two fractions or rational expressions, multiply the dividend with the
reciprocal of the divisor.
Definition. Let f and g be functions.

1. Their sum, denoted by
, is the function denoted by
.
2. Their difference, denoted by
.
3. Their product, denoted by
.
4. Their quotient, denoted by
, excluding the values of x where
14
Use the following functions below for Example 5.
Example 5. Determine the following functions.
C
O
PY
(a)
(b)
(c)
(d)
(e)
Solution.
(a)
(b)
EP
E
(d)
(c)
(e)
Use the following functions for Examples 6-12:
Example 6. Express the function

functions above.
as a sum or difference of the
Solution.
The solution can involve some trial and error. Add
sum is
Thus
and
and check if the
.
15

the given functions.
as the sum or difference of
Solution.
Again, the solution can involve trial and error. Check if
.
as a sum or difference of the
given functions.
Solution.
Because
has
as a denominator, then
and
must be one of
C
O
the functions in our solution. Let us try to add
PY
Thus
gives
Example 9. Write down the answers from the previous items in the notation
denoted in the definitions.
(a)
(b)
(c)
EP
E
Solution.

quotient of the given functions.
as a product or
Solution.
Since
.
Thus,
is cubic, then it is possibly the product of
and
16

given functions.
as a product or quotient of the
Solution.
The function
can be done by dividing
by
. This
as a product or quotient of the
given functions.
Solution.
is very similar to
. This can be done by dividing
by
Thus,
. The goal is to get rid of
C
O
The function
PY
Thus,
. The goal is to get rid of
involves
EP
E
Definition. Let f and g be functions. The composite function denoted by

is defined by
. The process of obtaining a
composite function is called function composition.
For examples 13 to 16, use the following functions:
Example 13. Find and simplify
.
.
Solution.
Solution.
17
Solution.
Solved Examples
(a)
(b)
(c)
(d)
(e)
Solution.
. Find:
EP
E
(a)
(b)
, and
C
O
1. Let
PY
Solution.
(c)
(d)
(e)
2.
Let
. Find:
(a)
(b)
(c)
Solution.
(a) (
18
(b)
(c)
3. Express the following functions as the sum, difference, quotient, or product of
and
.
(a)
(b)
(c)
PY
(d)
Solution.
(a)
(b)
C
O
(c
(d)
4. Suppose that N(x) = x denotes the number of shirts sold by a shop, and the
selling price per shirt is given by p(x) = 250 5x, for 0 x 20. Find (N p)(x)
and describe what it represents.
EP
E
Solution. (N p)(x) = N(x) p(x) = x(250 5x) = 250x 5x2 (0 x 20). Since
this function is the product of the quantity sold and the selling price, then
(N p)(x) represents the revenue earned by the company.
5. A spherical balloon is being inflated. Let r(t) = 3t cm represent its radius at time
t seconds, and let g(r) =
be the volume of the same balloon if its radius is
r. Write (g
r) = g(r(t)) =
This function represents the volume
Solution. (g
r) in terms of t, and describe what it represents.
of the balloon at time t seconds.

1. Let f and g be defined as
(a)
(b)
(c)
(d)
(e)
and
. Find
19
2. Let f and g be defined as in the previous example. Express the following

functions as the sum, difference, quotient, or product of f and g.
(a)
(b)
(c)
(d)
(e)
and
4. Given the following, find
C
O
(a)
(b)
(c)
(d)
. Find
PY
3. Let
(a)
(b)
(c)
(d)
5. Suppose that N(x) = x denotes the number of bags sold by a shop, and the
selling price per bag is given by p(x) = 320 8x, for 0 x 10. Suppose
further that the cost of producing x bags is given by C(x) = 200x.
Find (a) (N p)(x) and (b) (N p C)(x). What do these functions represent?
EP
E
6. Let x represent the regular price of a book.
a) Give a function f that represents the price of the book if a P100 price
reduction applies.
b) Give a function g that represents the price of the book if a 10% discount
applies.
c) Compute (f g)(x) and (g f)(x). Describe what these mean. Which of these
give a better deal for the customer?
20
Lesson 4: Representing Real-Life Situations Using

Rational Functions
Learning Outcome(s): At the end of the lesson, the learner is able to represent
real-life situations rational functions.
Lesson Outline:
1. Review: Polynomial functions
2. Rational functions and real-life situations
PY
Recall the definition of a polynomial function.
C
O
Definition: A polynomial function p of degree n is a function that can be

written in the form
where
and n is a positive integer. Each addend of the
sum is a term of the polynomial function. The constants
are the
coefficients. The leading coefficient is . The leading term is
, and the
constant term is
where
Definition: A rational function is a function of the form
are polynomial functions and

is not the zero function
). The domain of
is the set of all values of x
.
EP
E
and
(i.e.,
where
Example 1. An object is to travel a distance of 10 meters. Express velocity v as a

function of travel time t, in seconds.
Solution. The following table of values show v for various values of t.
t (seconds)
v (meters per second)
The function
1
10
2
5
4
2.5
5
2
10
1
can represent v as a function of t.
Example 2. Suppose that

(in mg/mL) represents the concentration of
a drug in a patient's bloodstream t hours after the drug was administered.
Construct a table of values for c(t) for t = 1, 2, 5, 10. Round off answers to three
decimal places. Use the table to sketch a graph and interpret the results.
Solution.
t
c(t)
0
0
1
2.5
2
3
5
0.962
10
0.495
21
PY
C
O
The graph indicates that the maximum drug concentration occurs around 1 hour
after the drug was administered (calculus can be used to determine the exact
value at which the maximum occurs). After 1 hour, the graph suggests that drug
concentration decreases until it is almost zero.
Solved Examples
EP
E
Solution.
1. In an organ pipe, the frequency f of vibration of air is inversely proportional to

the length L of the pipe.1 Suppose that the frequency of vibration in a 10-foot
pipe is 54 vibrations per second. Express f as a function of L.
Since f is inversely proportional to L, then
, where k is the constant of
proportionality.
If L = 10 then f = 54. Thus,
. Thus, the function
represents f as a function of L.
2. The distance from Manila to Baguio is around 250 kilometers.

(a) How long will it take you to get to Baguio if your average speed is 25
kilometers per hour? 40 kilometers per hour? 50 kilometers per hour?
(b) Construct a function
, where is the speed of travel, that describes
the time it takes to drive from Manila to Baguio.
Barnett, R.A., Ziegler, M.R., Byleen, K.E., &Sobecki, D. (2008). Precalculus(7th ed). New York:
McGraw Hill.
22
Solution.
(a) Distance is calculated as the product of speed and time. So we can get
the time by dividing distance by the speed.
250 kilometers/ 25 kilometers per hour = 10 hours
250 kilometers/ 40 kilometers per hour = 6.25 hours
250 kilometers/ 50 kilometers per hour = 5 hours
PY
(b) Since time is the quotient of distance and speed, we can write out the
function as
The distance is fixed at 250 kilometers so the final function we have is
C
O
, find
1. Given the polynomial function

(a) The degree of the polynomial
(b) The leading coefficient
(c) The constant term
(d) The number of zeroes
EP
E
2. The budget of a university organization is split evenly among its various

committees. If they have a budget of P60,000:
(a) Construct a function
which would give the amount of money each of
the number of committees would receive.
(b) If the organization has eight committees, how much would each
committee have?
A company has a budget of P90,000 to be split evenly among its various
offices. The marketing office of the company receives twice the amount of
money than the other offices.
(a) Given as the number of offices in the company, construct a function
which would give the amount of money each of the non-marketing
offices would receive.
(b) If the company had five offices, how much would the marketing office
receive? How much would each of the non-marketing offices receive?
3.
4. Let
be the function that describes the concentration of a certain
medication in the bloodstream over time .

(a) What is C(0)? Why is that so?
(b) Construct a table of values for when t is equal to 0,1,2,3,4, and 5.
(c) Interpret your answers in relation to drug concentration.
23
Lesson 5: Rational Functions, Equations, and

Inequalities
Learning Outcome(s): At the end of the lesson, the learner is able to distinguish
among rational functions, rational equations, and rational inequalities
Lesson Outline:
1. Rational functions, rational equations, and rational inequalities
.
Some examples of rational expressions are
PY
Definition: A rational expression is an expression that can be written as a ratio

of two polynomials.
.
The definitions of rational equations, inequalities, and functions are shown below.
where
and
are polynomial
functions and
is
not the zero function
(i.e.,
).
EP
E
Example
Rational Function
A function of the
form
C
O
An equation
involving rational
expressions.
Definition
Rational Inequality
An inequality
involving rational
expressions.
A rational equation or inequality can be solved for all x values that satisfy the
equation or inequality. A rational function expresses a relationship between two
variables (such as x and y), and can be represented by a table of values or a
graph (Lessons 6-7).
Solved Examples
Determine whether the given is a rational function, a rational equation, a rational

inequality or none of these.
1.
(Answer: Rational equation)
2.
(Answer: None of these)
3. f(x) =
(Answer: Rational Function)
4.
(Answer: Rational Inequality)
5.
(Answer: Rational equation)

24

Determine whether the given is a rational function, a rational equation, a rational
inequality or none of these.
1.
3.
5.
2.
4.
6.
PY
Lesson 6: Solving Rational Equations and

Inequalities
C
O
Learning Outcome(s): At the end of the lesson, the learner is able to solve
rational equations and inequalities, and solve problems involving rational
equations and inequalities.
Lesson Outline:
1. Solving rational equations.

2. Solving rational inequalities.
3. Solving word problems involving rational equations or inequalities.
EP
E
To solve a rational equation:

(a) Eliminate denominators by multiplying each term of the equation by the
least common denominator.
(b) Note that eliminating denominators may introduce extraneous solutions.
Check the solutions of the transformed equations with the original
equation.
Example 1. Solve for x:
Solution. The LCD of all the denominators is 10x. Multiply both sides of the
equation by 10x and solve the resolving equation.
25
Example 2. Solve for x:

Solution. Factor each denominator in the rational expression.
PY
Multiply the LCD to both sides of the equation to remove the denominators.
C
O
Upon reaching this step, we can use strategies for solving polynomial equations.
or
or
Since
makes the original equat ion undefined,
is the only solution.
EP
E
Example 3. In an inter-barangay basketball league, the team from Barangay

Culiat has won 12 out of 25 games, a winning percentage of 48%. How many
games should they win in a row to improve their win percentage to 60%
Solution. Let x represent the number of games that they need to win to raise
their percentage to 60%. The team has already won 12 out of their 25 games. If
they win x games in a row to increase their percentage to 60%, then they would
.
have played 12+x games out of their 25+x games. The equation is
Multiply 25+x to both sides of the equation and solve the resulting equation.
Therefore, Barangay Culiat needs to win 8 games in a row to raise their winning
percentage to 60%.
26
Example 4. Jens walks 5 kilometers from his house to Quiapo to buy a new bike
which he uses to return home. He averaged 10 kilometers faster on his bike than
on foot. If his total trip took 1 hour and 20 minutes, what is his walking speed in
.
kph? Use the formula
Solution. Using the formula
, we derive the formula for the time
. Let v
be Jens walking speed. Then v+10 is his speed on his new bike. Jens walking
.
time is and his biking time is
C
O
PY
The equation now becomes

.
Multiply both sides of the equation by the LCD and solve the resulting equation.
, we conclude that Jens walking speed is 5kph.
EP
E
Rejecting the value
To solve rational inequalities:
(a) Rewrite the inequality as a single rational expression on one side of the
inequality symbol and 0 on the other side.
(b) Determine over what intervals the rational expression takes on positive
and negative values.
i. Locate the x values for which the rational expression is zero or
undefined (factoring the numerator and denominator is a useful
strategy).
ii. Mark the numbers found in (i) on a number line. Use a shaded circle to
indicate that the value is included in the solution set, and a hollow
circle to indicate that the value is excluded. These numbers partition
the number line into intervals.
iii. Select a test point within the interior of each interval in (ii). The sign of
the rational expression at this test point is also the sign of the rational
expression at each interior point in the aforementioned interval.
iv. Summarize the intervals containing the solutions.
27
Warning! Multiplying both sides of an inequality by a number requires that the

sign (positive or negative) of the number is known. Since the sign of a variable is
unknown, it is not valid to multiply both sides of an inequality by a variable.
Example 6. Solve the inequality
Solution.
PY
(a) Rewrite the inequality as a single rational expression.
C
O
(b) The rational expression will be zero for x = 1 and undefined for x = 1.
The value x = 1 is included while x = 1 is not. Mark these on the number
line. Use a shaded circle for x = 1 (a solution) and an unshaded circle for
x = -1 (not a solution).
(c) Choose convenient test points in the intervals determined by 1 and 1 to

in these intervals. Construct a table of signs as
EP
E
determine the sign of

shown below.
Interval
Test Point
(d) Since we are looking for the intervals where the rational expression is
positive or zero, we determine the solution to be the set
. Plot this set on the number line.
28
PY
(a) Rewrite the inequality with zero on one side.
C
O
(b) The rational expression will be zero for x = 1 and undefined for 0 and 2.
Plot these points on a number line. Use hollow circles since these values
are not part of the solution.
(c) Construct a table of signs to determine the sign of the function in each
interval determined by 1, 0, and 2.
Interval
EP
E
Test Point
(d) Summarize the intervals satisfying the inequality. The solution set of the
inequality is the set
. Plot this set on the
number line.
29
Example 8. A box with a square base is to have a volume of 8 cubic meters. Let
x be the length of the side of the square base and h be the height of the box.
What are the possible measurements of a side of the square base if the height
should be longer than a side of the square base?
Solution. The volume of a rectangular box is the product of its width, length, and
height. Since the base of the box is square, its width and length are equal.
The variable x is the length of a side of the box, while h is its height. The
equation relating h and x is
. Expressing h in terms of x, we obtain
C
O
PY
Since the height is greater than the width,

and our inequality is
.
(a) To solve this inequality, we begin by rewriting it with zero on one side:
(b) The rational expression will be zero for x = 2 and undefined for x = 0. Plot
on a number line and use hollow circles since these values are not part of
the solution.
EP
E
interval determined by 0 and 2. Note that
is positive for any
real values of x.
Interval
Test point
(d) Since the rational expression is positive in the interval 0 < x < 2, this is the
solution set of the inequality. We reject the interval x < 0 even if the
expression is positive here since we only consider positive values of x for
this problem.
Therefore the height of the box should be less than 2 meters.
Example 9. A dressmaker ordered several meters of red cloth from a vendor, but
the vendor only had 4 meters of red cloth in stock. The vendor bought the
remaining lengths of red cloth from a wholesaler for P1,120.00. He then sold
those lengths of red cloth to the dressmaker along with the original 4 meters of
30
cloth for a total of P1,600.00. If the vendor's price per meter is at least P10.00
more than the wholesaler's price per meter, how many additional meters of red
cloth did the vendor purchase from the wholesaler?
Solution. Let the variable x be the length of the additional cloth purchased by the
vendor from the wholesaler.
The wholesaler's price of red cloth per meter can be expressed as
vendors price of red cloth per meter can be expressed as
. The
PY
If the vendor sold his cloth to the dressmaker at a price that is at least P10.00
more per meter, the inequality can be written as
EP
E
C
O
(a) To solve this inequality, we rewrite with zero on one side and simplify:
(b) The rational expression will be zero for x = 16 and x = 28 and undefined
for x = 0 and x = 4. Plot on a number line and use hollow circles since
these values are not part of the solution set. The figure below is not
drawn to scale.
interval determined by the values above.
31
Interval
Test point
PY
(d) The rational expression is negative in the interval -4 < x < 0 and in the
interval 16 < x < 28. However, since we are dealing with lengths of cloth,
we discard the interval where the length is negative. Also, the rational
expression is 0 when x = 16 and x = 28. Therefore the vendor bought
and sold an additional length of red cloth from 16 28 meters to the
dressmaker.
C
O
Solved Examples
.
Solution.
The LCD is
results in:
. Multiplying both sides of the equation by the LCD
EP
E
1. Solve for x:
Therefore, x = 5 or x = 4. Since x = 4 will make the original equation undefined,

the only solution is x = 5.
.
2. Solve for x:
Solution.
(a) Rewrite the equation with zero on one side
32
(b) The rational expression will be zero for x = -4 and undefined for x = 1.
Plot the points on a number line and use hollow circles since these values
are not part of the solution set.
PY
Interval
Test Point
C
O
3. Solve for x:
Solution.
(d) We are looking for the intervals where the function will be negative. The
solution set is given by
. The graph is shown below.
EP
E
(a) Rewrite the equation with zero on one side
(b) The rational expression will be zero for
and undefined for
and
. Mark these on the number line where
included while the others are not.
is
33
Interval
PY
Test Point
C
O
(d) The solution set of the inequality is given by
1. Solve for x:
2. Solve for x:
EP
E
3. Solve for x:
4. Solve for x:
5. Solve for x:
, find the solution set of
6. If a and b are real numbers such that
7. You have 6 liters of a pineapple juice blend that has 50% pure pineapple juice.
How many liters of pure pineapple juice needs to be added to make a juice
blend that is 75% pineapple juice?
8. Two ships traveling from Dumaguete to Cagayan de Oro differ in average
speed by 10 kph. The slower ship takes 3 hours longer to travel a
240-kilometer route than for the faster ship to travel a 200-kilometer route. Find
the speed of the slower ship.
34
Lesson 7: Representations of Rational Functions

Learning Outcome(s): At the end of the lesson, the learner is able to represent
a rational function through its table of values, graphs and equation, and solve
problems involving rational functions.
Lesson Outline:
Definition:
and
(i.e.,
PY
1.
Table of values, graphs and equations as representations of a rational
function.
2. Rational functions as representations of real-life situations
A rational function is a function of the form

are polynomial functions and
). The domain of
is all values of
where
is not the zero polynomial

where
.
C
O
Average speed (or velocity) can be computed by the formula

. Consider a
100-meter track used for foot races. The speed of a runner can be computed by
taking the time for him to run the track and applying it to the formula
,
since the distance is fixed at 100 meters.
Example 1. Represent the speed of a runner as a function of the time it takes to

run 100 meters in the track.
EP
E
Solution. Since the speed of a runner depends on the time it takes to run 100
meters, we can represent speed as a function of time.
Let x represent the time it takes to run 100 meters. Then the speed can be
represented as a function
as follows:
Observe that it is similar to the structure to the formula
relating speed,
distance, and time.
Example 2. Continuing the scenario above, construct a table of values for the
speed of a runner against different run times.
Solution. A table of values can help us determine the behavior of a function as
the variable changes.
The current world record (as of October 2015) for the 100-meter dash is 9.58
seconds set by the Jamaican Usain Bolt in 2009. We start our table of values at
10 seconds.
35
Let x be the runtime and

where
be the speed of the runner in meters per second,
. The table of values for run times from 10 seconds to 20
seconds is as follows:
10
10
12
8.33
14
7.14
16
6.25
18
5.56
20
5
From the table we can observe that the speed decreases with time. We can use
a graph to determine if the points on the function follow a smooth curve or a
straight line.
PY
Example 3. Plot the points on the table of values on a Cartesian plane.

Determine if the points on the function
follow a smooth curve or a
straight line.
C
O
Solution. Assign points on the Cartesian plane for each entry on the table of
values above:
A(10,10) B(12,8.33) C(14, 7.14) D(16, 6.25) E(18,5.56) F(20,5)
EP
E
Plot these points on the Cartesian plane:
By connecting the points, we can see that they are not collinear but rather follows
a smooth curve.
36
PY
C
O
For the 100-meter dash scenario, we have constructed a function of speed

against time, and represented our function with a table of values and a graph.
The previous example is based on a real world scenario and has limitations on
the values of the x-variable. For example, a runner cannot have negative time
(which would mean he is running backwards in time!), nor can he exceed the
limits of human physiology (can a person run 100-meters in 5 seconds?).
However, we can apply the skills of constructing tables of values and plotting
graphs to observe the behavior of rational functions.
Example 4. Represent the rational function given by
using a table of
EP
E
values and plot a graph of the function by connecting points.

Solution. Since we are now considering functions in general, we can find
function values across more values of x. Let us construct a table of values for
some x-values from -10 to 10:
1.29
1.4
1.67
0
3
2
0.33
4
0.6
6
0.71
8
0.78
10
0.82
1.22
Plotting the points on a Cartesian plane we get:
37
Connecting the points on this graph, we get:
PY
Why would the graph unexpectedly break the smooth curve and jump from point
E to point F? The answer is that it doesnt! Let us take a look at the function
again:
EP
E
C
O
Observe that the function will be undefined at

. This means that there
cannot be a line connecting point E and point F as this implies that there is a
point in the graph of the function where
.We will cover this aspect of
graphs of rational functions in a future lesson, so for now we just present a partial
graph for the function above as follows:
Example 5. Represent the rational function
using a table of
values. Plot the points given in the table of values and sketch a graph by
connecting the points.
Solution. As we have seen in the previous example, we will need to take a look
will
at the x-values which will make the denominator zero. In this function,
make the denominator zero. Taking function values for integers in
we get the following table of values:
2
0
5
0
6
1.33
7
2.57
8
3.75
9
4.89
10
6
38
C
O
PY
Plotting the values above as points in the Cartesian plane:
is not
and those
EP
E
We connect the dots to sketch the graph, but we keep in mind that
part of the domain. For now we only connect those with values
with values
Note that
and
are zeroes of the rational function, which means that
the function value at these values is zero. These x-values give the x-intercepts of
the graph.
39
The behavior of the function near those values which make the function
undefined will be studied in the next few lessons.
Example 6. In an inter-barangay basketball league, the team from Barangay
Culiat has won 12 out of 25 games, a winning percentage of 48%. We have seen
that they need to win 89 games consecutively to raise their percentage to at least
60%. What will be their winning percentage if they win:
(a)
(b)
(c)
10 games in a row?
15? 20? 30? 50? 100 games?
Can they reach a 100% winning percentage?
C
O
Construct a table of values for
PY
Solution. Let be the number of wins the Barangay Culiat needs to win in a row.
Then the percentage is a function of the number of wins that the team needs to
win. The function can be written as:
10
15
20
30
50
100 200 300
0.63 0.68 0.71 0.76 0.83 0.90 0.94 0.96
We interpret the table of values as follows:
Win Percentage
60%
63%
68%
71%
76%
83%
90%
94%
96%
EP
E
No. of consecutive wins

8
10
15
20
30
50
100
200
300
Even if the team wins 300 consecutive games, the team still cannot reach a 100%
winning percentage. Note that the denominator 25 + x is greater than the numerator,
so 100% cannot be achieved. This is reasonable, since the team has lost 13 games
already, so they cannot be perfect.
Example 7. Ten goats were set loose in an island and their population growth can be
approximated by the function
where P represents the goat population in year t since they were set loose. Recall
that the symbol denotes the greatest integer function.
(a) How many goats will there be after 5 years?
(b) What is the maximum goat population that the island can support?
40
Solution.
(a) Evaluate the function for
There will be 32 goats after 5 years.

:
20
48
50
54
300
59
1000
59
PY
(b) Construct a table of values for

5
10
15
32
41
45
C
O
Observe that even if increase, the function does not exceed 59. The model
suggests that the island can only support up to 59 goats. (Note that since the
model is just an approximation, there may be errors and the number 59 may not
be exact).
Solved Examples
1. Given
EP
E
Solution.
(a)
(a) Construct a table of values using the numbers from

to .
(b) Plot the points in the Cartesian plane and determine whether the points form
a smooth curve or a straight line.
3
Und.
4
10
5
5
6
3.3
7
2.5
8
2
(b) Plotting the points, we get the following:
41
C
O
PY
Connecting the points, we get the following graph which forms two different smooth
curves.
2. Using integer values from

to 5, find the interval where the smooth curve of the
following functions will disconnect:
(a)
EP
E
(b)
Solution.
(a)
1
und
2
4
3
2
4
1.33
5
1
Constructing the table of values, we see that the function

is undefined at
, If we plot the points and connect them, we will see that we can only
connect those with values
and those with values
.
So we can say that it disconnects at the interval
(b)
0
und
Similar to letter (a), we see that
interval
.
is undefined at
0.8
0.33
. It disconnects at the
42
3. A hypothetical function representing the concentration of a drug in a patients

bloodstream over time (in hours) is given as
(a) Construct a table of values.

(b) Plot the points in a Cartesian plane and connect them.
(c) What can you say about the function?
Solution.
PY
(a) Since t is in time, we can only use non-negative values for it. Using the first
ten whole numbers, we get
t
0
1
2
3
4
5
6
7
8
9
c(t)
0
2.5
2
1.5
1.18 0.96 0.81
0.7
0.62 0.55
EP
E
C
O
(b) Plotting the points and connecting them we get:
(c) At
, the concentration is zero since the drug has not entered the
bloodstream yet. It shoots up at
but it starts decreasing after that.
1. Construct a table of values for the following functions using the integers from
to .
(a)
(b)
2. Using the table of values you got from the previous question, plot and connect the
points of
(c)
(e)
3. A certain invasive species of fish was introduced in a small lake and their
population growth can be modeled with time by the function
(a) Construct a table of values

(b) Is their population approaching a specific value?
43
Lesson 8: Graphing Rational Functions

Learning Outcome(s): At the end of the lesson, the learner is able to find the
domain and range, intercepts, zeroes, asymptotes of rational functions, graph
rational functions, and solve problems involving rational functions.
Lesson Outline:
Domain and range of rational functions.
Intercepts and zeroes of rational functions.
Vertical and horizontal asymptotes of rational functions.
Graphs of rational functions
PY
1.
2.
3.
4.
Recall:
Example 1. Consider the function
C
O
(a) The domain of a function is the set of all values that the variable x can take.
(b) The range of the function is the set of all values that f(x) will take.
(c) The zeroes of a function are the values of x which make the function zero.
The real numbered zeroes are also x-intercepts of the graph of the function.
(d) The y-intercept is the function value when x=0.
(a) Find its domain, (b) intercepts, (c)
Solution.
sketch its graph and (d) determine its range.
EP
E
(a) The domain of f(x) is

.
Observe that the function is undefined at x = 2. This means that x = -2 is not
part of the domain of f(x). In addition, other values of x will make the function
undefined.
(b) The x-intercept of f(x) is 2 and its y-intercept is 1.

Recall that the x-intercepts of a rational function are the values of x that will
make the function zero. A rational function will be zero if its numerator is zero.
Therefore the zeroes of a rational function are the zeroes of its numerator.
The numerator x 2 will be zero at x=2. Therefore x=2 is a zero of f(x). Since
it is a real zero, it is also an x-intercept.
The y-intercept of a function is equal to f(0). In this case,
.
(c) In sketching the graph of f(x), let us look at what happens to the graph near
the values of x which make the denominator undefined. Recall that in the
previous lesson, we simply skipped connecting the points at integer values.
Let us see what happens when x takes on values that brings the denominator
closer to zero.
The denominator is zero when x = 2. Let us look at the values of x close to 2 on its
left side (i.e. x < 2, denoted 2--) and values of x close to 2 on its right side (i.e. x >
2, denoted 2+).
44
i.
Table of values for x approaching 2

3 2.5 2.1 2.01 2.001
5
9
41
401
4001
2.0001
40001
As x approaches 2
f(x) increases without bound.
Notation. We use the notation f(x) + as x 2 to indicate that f(x) increases

without bound as x approaches 2 from the left.
1.9999
39999
As x approaches 2+
f(x) decreases without bound.
PY
ii. Table of values for x approaching 2+

1 1.5 1.9 1.99 1.999
3
7
39
399 3999
Notation. We use the notation f(x) as x 2+ to indicate that f(x) decreases

without bound as x approaches 2 from the right.
EP
E
C
O
Plotting the points corresponding to these values on the Cartesian plane:
Figure 2.3 Note that the axes do not have the same scale.
Observe that as x approaches 2 from the left and from the right, f(x) gets closer and
closer to the line x = 2, indicated in the figure with a dashed line.
We call this line a vertical asymptote, formally defined as follows:
Definition. The vertical line x = a is a vertical asymptote of a function f if the graph
of f either increases or decreases without bound as the -values
approach a from the right or left.
45
Finding the Vertical Asymptotes of a Rational Function

Find the values of a where the denominator is zero.
If this value of a does not make the numerator zero, then the line x = a is a
vertical asymptote.
We will also look how the function behaves as x increases or decreases without
bound.
iii. Table of values for f(x) as

5
10
100
0.43
0.67
0.96
PY
We first construct a table of values for f(x) as x increases without bound, or in

symbols, as x +.
1,000
0.9960
10,000
0.99960
As
f(x) approaches 1
iv.
C
O
Next, construct a table of values for f(x) as x decreases without bound, or in symbols,
as x .
Table of values for f(x) as
5
10
100
1,000
2.33
1.41
1.041
1.00401
10,000
1.0004001
As
f(x) approaches 1+
EP
E
Plotting the points according to these on the Cartesian Plane:
Figure 2.4: Note that the axes do not have the same scale.
Observe that as x increases or decreases without bound, f(x) gets closer and closer
to 1. The line y= 1 is indicated in the figure with a dashed line.
We call this line a horizontal asymptote, formally defined as follows:
46
Definition. The horizontal line y = b is a horizontal asymptote of the function f if f(x)

gets closer to b as x increases or decreases without bound (x + or x
.).
A rational function may or may not cross its horizontal asymptote. If the function does
not cross the horizontal asymptote y = b, then b is not part of the range of the
rational function.
PY
Now that we know the behavior of the function as x approaches 2 (where the
function is not defined), and also as x + or x , we can complete the sketch
of the graph by looking at the behavior of the graph at the zeroes.
Interval
Test point
Test with the
rational function
C
O
Construct a table of signs to determine the sign of the function on the intervals
determined by the zeroes and the intercepts. Refer to the lesson on rational
inequalities for the steps in constructing a table of signs:
The boundary between the intervals -2 < x < 2 and x >2 is a zero. Since the function
is positive on the left of 2 and negative on the right, the function transitions from
positive to negative at x = 2.
EP
E
Plot the zeroes, y-intercept, and the asymptotes. From the table of signs and the
previous graphs, we know that f(x)<1 as
. Draw a short segment across (2,0)
to indicate that the function transitions from negative to positive at this point.
We also know that f(x) increases without bound as

and f(x) decreases
without bound as as
. Sketch some arrows near the asymptote to indicate
this information.
Figure 2.5 Zeroes and asymptotes of f(x).
47
PY
Trace the arrowheads along with the intercepts using smooth curves. Do not cross
the vertical asymptote.
EP
E
C
O
Figure 2.6 Tracing with smooth curves
Figure 2.7 The actual sketch of the graph of
for reference.
(d) From the graph of the rational function, we observe that the function does not
cross the horizontal asymptote. We also observe that the function increases
and decreases without bound, and is asymptotic to the line y = 1. Therefore
only the value 1 is not included in the range of f(x).
The range of f(x) is
Example 2. Find the horizontal asymptote of
Solution. We have seen from the previous example that the horizontal asymptotes
can be determined by looking at the behavior of rational functions when |x| is very
large (i.e., at extreme values of x).
48
However, at extreme values of x, the value of a polynomial can be approximated

using the value of the leading term.
For example, if x=1000, the value of
approximation is the value of
, which is 4,000,000.
is 4,004,001. A good
Similarly, for extreme values of , the value of
can be approximated by
. Thus, for extreme values of , then

therefore
, and
approaches 4 for extreme values of .
PY
This means that we have a horizontal asymptote at y=4.
can
C
O
Solution. Following the idea from the previous example, the value of
be approximated by
for extreme values of .
Thus, the horizontal asymptote is
EP
E
Solution. Again, based on the idea from the previous example, the value of
If we substitute extreme values of
for extreme values of .

in
, we obtain values very close to 0.
Thus, the horizontal asymptote is y=0.
Example 5. Show that

If we substitute extreme values of
in
, we obtain extreme values as well.
Thus, if takes on extreme values, then y also takes on extreme values and does not
approach a particular finite number. The function has no horizontal asymptote.
49
We summarize the results from the previous examples as follows:

Finding the Horizontal Asymptotes of a Rational Function
Let be the degree of the numerator and be the degree of the denominator.
If
If
coefficient of the numerator and

is the leading coefficient of the
denominator.
If
, there is no horizontal asymptote.
Properties of rational functions:

How to find the:
Do the following:
, where
is the leading
PY
, the horizontal asymptote is

.
, the horizontal asymptote is
Evaluate the function at x = 0.
x-intercept
Find the values of x where the numerator will be zero.
Vertical asymptotes
Find the values of a where the denominator is zero. If

this value of a does not make the numerator zero,
then the line x = a is a vertical asymptote.
C
O
y-intercept
If n = m, the horizontal asymptote is
where a is the leading coefficient of the

numerator and b is the leading coefficient of
the denominator.
If n > m, there is no horizontal asymptote.
EP
E
Horizontal asymptotes
Let n be the degree of the numerator and m the

degree of the denominator
If n < m, the horizontal asymptote is y = 0.
Example 6. Sketch the graph of
. Find its domain and range.
Solution. The numerator and denominator of f(x) can be factored as follows:
50
From the factorization, we can get the following properties of the function:
y-intercept:
zeroes:
vertical asymptotes:
horizontal asymptote: The polynomials in the numerator and denominator

have equal degree. The horizontal asymptote is the ratio of the leading
and
PY
coefficients:
EP
E
C
O
Plot the intercepts and asymptotes on the Cartesian plane:
Figure 2.8: Intercepts and asymptotes of f(x).
Construct a table of signs for the following intervals defined by the zeroes and the
values where the denominator will be zero:
51
Interval
Test point
x3
2x 1
x+4
+
above
x-axis
below
x-axis
+
above
x-axis
below
x-axis
Above
x-axis
PY
3x + 1
C
O
EP
E
Draw sections of the graph through the zeroes indicating the correct transition based
on the table of signs.
Figure 2.9: Sketch the transitions across the zeroes based on the table of signs
52
C
O
PY
Draw sections of the graph near the asymptotes based on the transition indicated on
the table of signs.
Figure 2.10: Sketch the graph near the asymptotes based on the table of signs.
EP
E
Complete the sketch by connecting the arrowheads, making sure that the sketch
passes through the y-intercept as well. The sketch should follow the horizontal
asymptote as the x-values goes to the extreme left and right of the Cartesian plane.
Figure 2.11: Rough sketch of the graph following the information above.
53
PY
C
O
Figure 2.12: Actual sketch of the graph using a software grapher.
The domain of the function is all values of x not including those where the function is
undefined. Therefore the domain of f(x) is
1. Let
EP
E
Solved Examples
From the graph of the function, we observe that the function increases and
decreases without bound. The graph also crosses the horizontal asymptote.
Therefore the range of the function is the set of all real numbers.
(a) Find its domain, (b) intercepts, (c) asymptotes. Next, (d) sketch
its graph and (e) determine its range.

Solution.
(a) The domain of f(x) is

.
(b) The x-intercept is 5 and its y-intercept is 5.
(c) The vertical asymptote is x = 1. The degree of the numerator is equal to the
degree of the denominator. The horizontal asymptote is y = 1/1 = 1.
(d) The table of signs is shown below.
Interval
Test point
x+5
x1
+
above x-axis
below x-axis
+
+
+
above x-axis
54
C
O
PY
The graph of the function is given by:
(d) Based on the graph, the range of the function is
. Find its domain, (b) intercepts, (c) asymptotes. Next, (d)
EP
E
sketch its graph.
2. Let
Solution.
The domain of f(x) is

.
The x-intercept is 3 and its y-intercept is 1.
The vertical asymptotes are x = 3 and x = 1. The degree of the numerator is
less than the degree of the denominator. The horizontal asymptote is y = 0.
(a)
(b)
(c)
(d)
The table of signs is shown below.

Interval
Test point
x+3
x3
x+1
below x-axis
+
above x-axis
below x-axis
+
+
+
+
above x-axis
55
PY
The graph of the function is given by:
C
O
Observe that the graph approaches the horizontal asymptote y = 0 as x increases or

decreases without bound. Calculus is needed to determine the range of this function.
3.Past records from a factory suggest that new employees can assemble N(t)
components per day after t days of being on the job, where
Sketch the graph of N. Identify the horizontal asymptote of N, and discuss its
meaning in practical terms.
Solution.
. (Negative values
EP
E
(a) The domain of N(t), as stated in the problem, is

of t are not allowed because t refers to a number of days).
(b) The t-intercept is 0 and the y-intercept is 0.
(c) There is no vertical asymptote in the stated domain. The degree of the numerator
and denominator are equal. The horizontal asymptote is y = 75.
(d) The table of signs is shown below.
Interval
Test point
75t
t+5
+
+
+
above xaxis
As a person gains experience on the job, he or she works faster, but the maximum
number of items that can be assembled cannot exceed 75.
56

1. Find all asymptotes of
2. Explain why the function
is not asymptotic to the line
Sketch the graph of this function.

3. Sketch the graph of
and give its domain, intercepts,
PY
asymptotes, and range.

4. Sketch the graph of
and give its domain, intercepts, and
C
O
asymptotes.
5. After a drug is injected into a patients bloodstream, the concentration c of the

drug in the bloodstream t minutes after the injection is given by
. Sketch the graph of c. Identify the horizontal asymptote of c, and
discuss its meaning in practical terms.
EP
E
6. A challenging riddle. I am a rational function having a vertical asymptote at

the lines x = 3 and x = 3, and a horizontal asymptote at y = 1. If my only xintercept is 5, and my y-intercept is 5/9, what function am I?
57
Lessons 1- 8 Topic Test 1

1. True or False
[6]
(a) A function is a set of ordered pairs

such that no two ordered pairs have
the same -value but different -values
(b) The leading coefficient of
is 3.
(c) In a rational function, If the degree of the numerator is the smaller than the
degree of the denominator then there is an asymptote at
.
using set builder notation.
3. Given
4. Given
, what is
and
[5]
, find:
(a)
5. Is the solution set of
in set builder notation
6. Identify the zeroes of the function
[15]
C
O
(b)
(c)
[4]
PY
? Explain. [5]
. For what values will the

[10]
function be undefined?
[5]
EP
E
7. Identify the asymptotes of the graph below.
58
Lessons 1 8 Topic Test 2

1. A part-time job gives you an hourly wage of P50.00. If you work for more than 40
hours per week, you get an overtime pay that is 1.5 times your normal hourly
wage. Write a piecewise function
that gives your weekly pay in terms of the
number of hours you worked that week.
[10]
, evaluate the function
at the following values of x:
[5]
PY
2. Given the piecewise function
3. Let
C
O
(a)
(b)
(c)
(d)
,
, and
4. Solve for x:
, find
in set builder notation.
EP
E
5. Give the solution set of
[10]
[10]
[5]
6. Find the asymptotes of
. [10]
59
Lesson 9: One-to-One functions

Learning Outcome(s): At the end of the lesson, the learner is able to represent reallife situations using one-to-one functions.
Lesson Outline:
1. One-to-one functions
2. Examples of real-life situations represented by one-to-one functions.
3. Horizontal line test.
PY
Definition: The function is one-to-one if for any x1, x2 in the domain of f, then
f(x1) f(x2). That is, the same -value is never paired with two different
-values.
C
O
In Examples 1-5, determine whether the given relation is a function. If it is a function,

determine whether it is one-to-one or not.
Example 1. The relation pairing an SSS member to his or her SSS number
Solution. Each SSS member is assigned to a unique SSS number. Thus, the
relation is a function. Further, two different members cannot be assigned the same
SSS number. Thus, the function is one-to-one.
Example 2. The relation pairing a real number to its square.
EP
E
Solution. Each real number has a unique perfect square. Thus, the relation is a
function. However, two different real numbers such as 2 and 2 may have the same
square. Thus, the function is not one-to-one.
Example 3. The relation pairing an airport to its airport code
Airport codes are three letter codes used to uniquely identify airports around the
world and prominently displayed on checked-in bags to denote the destination of
these bags. Here are some examples of airport codes:
MNL Ninoy Aquino International Airport (All terminals)
CEB Mactan-Cebu International Airport
DVO Francisco Bangoy International Airport (Davao)
JFK John F. Kennedy International Airport (New York City
CDG Charles de Gaulle International Airport (Paris, France)
Airport codes can be looked up at https://www.world-airport-codes.com

Solution. Since each airport has a unique airport code, then the relation is a
function. Also, since no two airports share the same airport code, then the function is
one-to-one.
60
Example 4. The relation pairing a person to his or her citizenship.

Solution. The relation is not a function because a person can have dual citizenship
(i.e., citizenship is not unique).
Example 5. The relation pairing a distance d (in kilometers) traveled along a given
jeepney route to the jeepney fare for traveling that distance.
Note that
PY
Solution. The relation is a function since each distance traveled along a given
jeepney route has an official fare. In fact, as shown in Lesson 1, the jeepney fare
may be represented by a piecewise function, as shown below:
is the floor or greatest integer function applied to .
C
O
However, the function is not one-to-one because different distances (e.g., 2, 3 or 4

kilometers) are charged the same rate (P8.00). That is, because
, then F is not one-to-one.
A simple way to determine if a given graph is that of a one-to-one function is by using
the Horizontal Line Test.
Horizontal Line Test. A function is one-to-one if each horizontal line does not
intersect the graph at more than one point.
A graph showing the plot of

fails the horizontal line test because some
lines intersect the graph at more than one point.
EP
E
The Vertical and Horizontal Line Tests. All functions satisfy the vertical line test.
All one-to-one functions satisfy both the vertical and horizontal line tests.
Solved Examples
1. Which of the following are one-to-one functions?
(a) Books to authors

(b) SIM cards to cell phone numbers
(c) True or False questions to answers
Solution.
Only b is a one-to-one function. Books can have multiple authors that wrote the
book. A true or false question has only one answer so it is a function but a True
answer can correspond to multiple questions.
2. Which of the following relations is a one-to-one function?
(a)
(b)
(c)
61
Solution.
Both a and c are one-to-one functions. B is a function however it is not one-to-one
since it has y-values that are paired up with two different x-values.

1. For what values of k is the set of order pairs {(2, 4), (k, 6), (4, k)} a one-to-one
function?
2. Consider each uppercase letter in the English alphabet as a graph. Is there any of
these letters that will pass both the vertical and horizontal line tests?
PY
3. The length of a rectangle, , is four more than its width. Let

be the function
mapping the length of the rectangle to its area. Is the function one-to-one?
Lesson 10: Inverse of One-to-One Functions
C
O
Learning Outcome(s): At the end of the lesson, the learner is able to determine the
inverses of one-to-one functions.
Lesson Outline:
1. Inverse of a one-to-one function.

2. Finding the inverse of a one-to-one function.
3. Property of inverse functions
EP
E
The importance of one-to-one functions is due to the fact that these are the only
functions that have an inverse, as defined below.
Definition: Let f be a one-to-one function with domain A and range B. Then the
inverse of f, denoted by f1, is a function with domain B and range A
defined by
if and only if
for any y in B.
A function has an inverse if and only if it is one-to-one. If a function f is not oneto-one, properly defining an inverse function f1 will be problematic. For example,
suppose that f(1) = 5 and f(3) = 5. If f 1 exists, then f1(5) has to be both 1 and 3, and
this prevents f1 from being a valid function. This is the reason why the inverse is
only defined for one-to-one functions.
To find the inverse of a one-to-one function:
(a) Write the function in the form y = f(x);
(b) Interchange the x and y variables;
(c) Solve for y in terms of x
Example 1. Find the inverse of
Solution. The equation of the function is
Interchange the x and y variables:
62
Solve for y in terms of x:
Therefore the inverse of
is
Given a one-to-one function

The inverse of
and its inverse
is
.
for all x in the domain of
, then the following are true:
for all x in the domain of .
C
O
PY
Property of an inverse of a one-to-one function
For the second and third properties above, it can be imagined that evaluating a
function and its inverse in succession is like reversing the effect of the function. For
example, the inverse of a function that multiplies 3 to a number and adds 1 is a
function that subtracts 1 and then divides the result by 3.
.
EP
E
The inverse of
is
Example 3. Find the inverse of the rational function
Solution. The equation of the function is:

Interchange the x and y variables :
63
is
C
O
Therefore the inverse of
PY
(Place all terms with y on one side and those without y on the other side.)
, if it exists.
Solution. The students should recognize that this is a quadratic function with a
graph in the shape of a parabola that opens upwards. It is not a one-to-one function
as it fails the horizontal line test.
(Optional) We can still apply the procedure for finding the inverse of a one-to-one
function to see what happens when it is applied to a function that is not one-to-one.
EP
E
The equation of the function is:
Solve for y in terms of x
(Complete the square)
The equation
does not represent a function because there are
some x-values that correspond to two different y-values (e.g., if x = 3, y can be 1 or 5.). Therefore the function
has no inverse function.
64
, if it exists.
Solution. Recall that the graph of

is shaped like a V whose vertex is
located at the origin. This function fails the horizontal line test and therefore has no
inverse.
Alternate Solution. We can also show that f1 does not exist by showing that f is not
one-to-one. Note that f(1) = f(1) = 3. Since the x-values 1 and 1 are paired to the
same y-value, then f is not one-to-one and it cannot have an inverse.
(Optional) If we apply the procedure for finding the inverse of a one-to-one function:
PY
The equation of the function is:

Interchange x and y:
C
O
EP
E
(Use
In this function, x=2 will correspond to f(x)=1 and f(x)= 1. Therefore f(x) has no
inverse function.
Example 6. To convert from degrees Fahrenheit to Kelvin, the function is

, where t is the temperature in Fahrenheit (Kelvin is the SI unit of
temperature). Find the inverse function converting the temperature in Kelvin to

degrees Fahrenheit.
Solution. The equation of the function is:
Since k and t refer to the temperatures in Kelvin and Fahrenheit respectively, we do

not interchange the variables.
65
Solve for t in terms of k:
where k is the
PY
Therefore the inverse function is

temperature in Kelvin.
C
O
Solved Examples
1. Find the inverse of
EP
E
Solution.
Therefore,
Solution.
Therefore,
66

1. Which among the following functions have an inverse?
(a)
(b)
(c)
(d)
(e)
.
3. Find
if
PY
Lesson 11: Graphs of Inverse Functions
C
O
Learning Outcome(s): At the end of the lesson, the learner is able to represent an
inverse function through its table of values and graph, find the domain and range of
an inverse function, graph inverse functions, solve problems involving inverse
functions.
Lesson Outline:
1. Graphs of inverse functions as a reflection about the line y = x

2. Domain and range of a one-to-one function and its inverse
Graphing Inverse Functions
EP
E
First we need to ascertain that the given graph corresponds to a one-to-one function
by applying the horizontal line test. If it passes the test, the corresponding function is
one-to-one.
Given the graph of a one-to-one function, the graph of its inverse can be obtained
by reflecting the graph about the line
.
Example 1. Graph
if the graph of
restricted in the
domain
is given below. What is the range of the function? What is
the domain and range of its inverse?
67
across the line
PY
Solution. Take the reflection of the restricted graph of

.
The range of the original function can be determined by the inspection of the graph.
The range is
.
C
O
Verify using techniques in an earlier lesson that the inverse function is given by
.
EP
E
Domain
Range
The domain and range of the inverse function can be determined by inspection of the
graph:
Domain of
Range of
In summary,
Observe that the domain of the inverse is the range of the original function, and that
the range f of the inverse is the domain of the original function. Is this true for all oneto-one functions and their inverses?
using its given graph.
68
using the techniques used in the previous lesson.

using the given graph.
EP
E
C
O
Verify that
PY
Solution. Applying the horizontal line test, we verify that the function is one-to-one.
Since the graph of
is symmetric with respect to the line
(indicated by
a dashed line), its reflection across the line
is itself. Therefore the inverse of
is itself or
.
Solution. Applying the horizontal line test, we confirm that the function is one-to-one.
Reflect the graph of
across the line
to get the plot of the inverse function.
The result of the reflection of the graph of

Therefore,
.
is the graph of
69
Example 4. Consider the rational function
whose graph is shown
C
O
PY
below:
Find its domain and range.

Find the equation of its asymptotes.
Find the graph of its inverse.
Find the domain and range of its inverse.
EP
E
(a)
(b)
(c)
(d)
Solution.
(a) From our lessons on rational functions, we get the following results:
Domain of
Range of
(b) Using techniques from the lesson on rational functions, the equations of the
asymptotes are
Vertical asymptote:
Horizontal asymptote:
70
C
O
PY
(c) The inverse can be graphed by taking the reflection of the graph across
EP
E
Observe that the new asymptotes are the old asymptotes with the and values
interchanged. In fact, the asymptotes could also be obtained by reflecting the
original asymptotes about the line
.
Vertical asymptote:
Horizontal asymptote:
(d) The domain and range of the functions and its inverse are as follows:
Domain
Range
We can make the observation that the domain of the inverse is the range of the
original function and the range of the inverse is the domain of the original function.
Example 5. In the examples above, what will happen if we plot the inverse functions
of the inverse functions?
Solution. If we plot the inverse of a function, we reflect the original function about
the line
. If we plot the inverse of the inverse, we just reflect the graph back
about the line
and end up with the original function.
This result implies that the original function is the inverse of its inverse, or
.
71
Solving problems involving inverse functions

We can apply the concepts of inverse functions in solving word problems involving
reversible processes.
Example 6. You asked a friend to think of a nonnegative number, add two to the
number, square the number, multiply the result by 3 and divide the result by 2. If the
result is 54, what is the original number? Construct an inverse function that will
provide the original number if the result is given.
C
O
PY
Solution. We first construct the function that will compute the final number based on
the original number. Following the instructions, we come up with this function:
EP
E
The graph is shown below, on the left. This is not a one-to-one function because the
graph does not satisfy the horizontal line test. However, the instruction indicated that
the original number must be nonnegative. The domain of the function must thus be
restricted to
, and its graph is shown on the right, below.
The function with restricted domain x 0 is then a one-to-one function, and we can
find its inverse.
72
we do not need to consider
The original number is 4.
to determine the original number:
C
O
Finally we evaluate the inverse function at
PY
(Since
Example 7. Engineers have determined that the maximum force in tons that a
particular bridge can carry is related to the distance in meters between it supports
by the following function:
EP
E
How far should the supports be if the bridge is to support 6.5 tons? Construct an
inverse function to determine the result.
To lessen confusion in this case, let us not interchange

specific values. Solve instead for in terms of :
The inverse function is
and
as they denote
Evaluate the function at t=6.5:
= 6.70.
The supports should be placed at most 6.70 meters apart.
73
Solved Examples
1. If
is restricted on the domain
domain of its inverse?
, what is the
Solution.
The domain of the inverse of
is just the range of
}. Therefore the domain of
is
below, sketch the graph of its inverse.
EP
E
C
O
PY
2. Given the graph of
. The range of
is
Solution.
is just the graphs reflection along y = x. So we get:
The graph of
74
3. Using algebraic methods, construct the inverse of

. Is the function
you get the same as the sketch of the inverse in the previous number?
Solution.
To get
, we first interchange x and y in
. So we get
We then isolate y
PY
So we get
. However, the graph of that will result in a parabola
opening downwards while the sketch we have in number 2 was just half that
parabola. This occurs because the function must be one-to-one to have an inverse.
C
O
with domain
2. Give the vertical and horizontal asymptotes of

horizontal asymptotes of its inverse.
. Give the vertical and
1. Find the domain and range of the inverse of

restriction
.
and its inverse intersect?
EP
E
3. At what point will the graph of
4. The formula for converting Celsius to Fahrenheit is given as

where
C is the temperature in Celsius and F is the temperature in Fahrenheit. Find the
formula for converting Fahrenheit to Celsius. If the temperature in a
thermometer reads 101.3F, what is that in C?
5. A particular breed of tilapia has its weight w (in kg) related to its length L (in
cm) modeled by the function w = (3.24 x 103)L2. Explain why the function is
one-to-one, even if it is a quadratic function. Find the inverse of this function
and approximate the length of a single fish if its weight is 400 grams.
75

1. True or False
[6]
(a) A linear function is a one-to-one function.

(b) The inverse of
is
.
(c) The graph of the inverse of a function can be obtained by reflecting the graph
of the function along
.
2. Identify if the following are one-to-one functions or not.
[6]
PY
(a) People to their birthdays

(b) People to their Social Security System number
(c) People to their place of residence
3. Which of the following functions have an inverse function? If so, find its inverse.
[18]
C
O
(a)
(b)
(c)
(d)
(e)
4. Sketch the graph of the inverse of the function
[10]

[15]
(a)
(b)
2. Find the domain and range of the inverse of
[10]
EP
E
1. Find the inverse of the following functions:
3. Find the asymptotes of the inverse of
[10]
4. At what point/s do the following functions and their inverses intersect? [15]
(a)
(b)
(c)
76
Lesson 12: Representing Real-Life Situations Using

Exponential Functions
Learning Outcome(s): At the end of the lesson, the learner is able to represent reallife situations using exponential functions.
Lesson Outline:
PY
1. Exponential functions
2. Population, half-life, compound interest
3. Natural exponential function
Definition: An exponential function with base b is a function of the form

f(x) = bx or y = bx(b > 0, b 1).
C
O
Example 1. Complete a table of values for x = 3, 2, 1, 0, 1, 2, and 3 for the

exponential functions y = (1/3)x, y = 10x, and y = (0.8)x.
Solution.
x
3
2
1
0
1
2
3
y = (1/3)x
27
9
3
1
1/3
1/9
1/27
y = 10x
1/1000
1/100
1/10
1
10
100
1000
x
y = (0.8) 1.953125 1.5625 1.25
1
0.8
0.64 0.512
EP
E
Example 2. If f(x) = 3x, evaluate f(2), f(2), f(1/2), f(0.4), and f().
Solution.
f(2) = 32 = 9
f(2) = 32 =
f(1/2) = 31/2 =
f(0.4) = 30.4 =32/5 =
Since = 3.14159 is irrational, the rules for rational exponents are not applicable.
We define 3 using rational numbers: f() = 3 can be approximated by 33.14. A better
approximation is 33.14159. Intuitively, one can obtain any level of accuracy for 3 by
considering sufficiently more decimal places of . Mathematically, it can be proved
that these approximations approach a unique value, which we define to be 3.
Definition. Let b be a positive number not equal to 1. A transformation of an
exponential function with base b is a function of the form
g(x) = abx c + d,
where a, c, and d are real numbers.
77
Some of the most common applications in real-life of exponential functions and their
transformations are population growth, exponential decay, and compound interest.
Example 3. At t = 0, there were initially 20 bacteria. Suppose that the bacteria
doubles every 100 hours. Give an exponential model for the bacteria as a function of
t.
Solution.
t=0
t = 100
t = 200
t = 300
t = 400
Number of bacteria = 20
Number of bacteria = 20(2)
Number of bacteria = 20(2)2
An exponential model for this situation is y = 20(2)t/100.
PY
Initially, at
at
at
at
at
C
O
Exponential Models and Population Growth

Suppose a quantity y doubles every T units of time. If y0 is the initial amount,
then the quantity y after t units of time is given by y = y0(2)t/T.
The half-life of a radioactive substance is the time it takes for half of the substance
to decay.
EP
E
Example 4. Suppose that the half-life of a certain radioactive substance is 10 days

and there are 10g initially, determine the amount of substance remaining after 30
days, and give an exponential model for the amount of remaining substance.
Solution. We use the fact that the mass is halved every 10 days (from definition of
half-life).
Let t = time in days. Thus, we have:
at
at
at
at
t= 0
t=10 days
t=20 days
t=30 days
Initially,
Amount of Substance =
10g
5g
2.5g
1.25g
An exponential model for this situation is y = 10(1/2)t/10.

Exponential Functions and Half-life
If the half-life of a substance is T units, and y0 is the amount of the substance
corresponding to t = 0, then the amount y of substance remaining after t units of
time is given by y = y0(1/2)t/T.
A starting amount of money (called the principal) can be invested at a certain
interest rate that is earned at the end of a given period of time (such as one year). If
the interest rate is compounded, the interest earned at the end of the period is
78
added to the principal, and this new amount will earn interest in the next period. The
same process is repeated for each succeeding period: interest previously earned will
also earn interest in the next period.
Example 5. Mrs. De la Cruz invested P100,000.00 in a company that offers 6%
interest compounded annually. Define an exponential model for this situation. How
much will this investment be worth at the end of each year for the next five years?
Solution.
Investment =
Investment =
Investment =
Investment =
Investment =
Investment =
P100,000
P100,000(1.06) = P106,000
P106,000(1.06) = P112,360
P112,360(1.06) P119,101.60
P119,101.60(1.06) P126,247.70
P 26,247.70(1.06) P133,822.56
PY
Initially, at t = 0
at t = 1
at t = 2
at t = 3
at t = 4
at t = 5
C
O
An exponential model for this situation is y = 100,000(1.06)t. The investment is worth

P133,822.56.
Compound Interest.
If a principal P is invested at an annual rate of r, compounded annually, then the
amount after t years is given by A = P(1 + r)t.
Example 6. Referring to Example 5, is it possible for Mrs. De la Cruz to double her

money in 8 years? in 10 years?
Solution. Using the model y = 100,000(1.06)t, substitute t = 8 and t = 10:
EP
E
If t = 8, y = P100,000(1.06)8 P159,384.81
If t = 10, y = P100,000(1.06)10 P179,084.77
Since her money still has not reached P200,000 after 10 years, then she has not
doubled her money during this time.
The Natural Exponential Function

While an exponential function may have various bases, a frequently used based is
the irrational number e, whose value is approximately 2.71828. The enrichment in
Lesson 27 will show how the number e arises from the concept of compound
interest. Because e is a commonly used based, the natural exponential function is
defined having e as the base.
Definition
The natural exponential function is the function f(x) = ex.
79
Example 7. A large slab of meat is taken from the refrigerator and placed in a preheated oven. The temperature T of the slab t minutes after being placed in the oven
is given by T = 170 165e0.006t degrees Celsius. Construct a table of values for the
following values of t: 0, 10, 20, 30, 40, 50, 60, and interpret your results. Round off
values to the nearest integer.
Solution.
t
T
0
5
10
15
20
24
30
32
40
40
50
47
60
54
PY
The slab of meat is increasing in temperature at roughly the same rate.
Solved Examples
Solution.
C
O
1. Robert invested P30,000 after graduation. If the average interest rate is 5.8%
compounded annually, (a) give an exponential model for the situation, and (b) will
the money be doubled in 15 years?
(a) At t = 0, the amount is P30,000.

At t = 1, the amount is P30,000(1.058) = P31,740.
At t = 2, the amount is P30,000(1.058)2 = P33,580.92
At t = 3, the amount is P30,000(1.058)3 = P35,528.61.
An exponential model for this situation is y = 30000 (1.058)t.
EP
E
(b) If t = 15, then y = 69,888.59. The money has more than doubled in 15 years.
2. At time t = 0, 500 bacteria are in a petri dish, and this amount triples every 15
days. (a) Give an exponential model for the situation. (b) How many bacteria are in
the dish after 40 days?
Solution.
(a) Let y be the number of bacteria.

At t = 0,
y = 500.
At t = 15,
y = 500(3) = 1,500.
At t = 30,
y = 500(3)2 = 4,500.
At t = 45,
y = 500(3)3 = 13,500.
At t = 60,
y = 500(3)4 = 40,500.
An exponential model for this situation is y = 500(3)t/15.
(b) If t = 40, then y = 500(3)40/15 9360. There will be 9360 bacteria after 40 days.
3. The half-life of a substance is 400 years. (a) Give an exponential model for
the situation. (b) How much will remain after 600 years if the initial amount
was 200 grams?
80
Solution.
(a)
At t = 0, the amount is 200 grams.

At t = 400, the amount is 200(1/2) = 100.
At t = 800, the amount is 200(1/2)2 = 50
At t = 1200, the amount is 200(1/2)3 = 25
Thus, an exponential model for this situation is y = 200(1/2)t/400.
(b)
If t = 600, then y = 70.71 grams.
PY
4. The population of the Philippines can be approximated by the function P(x) =

20000000e0.0251x (0 x 40) where x is the number of years since 1955 (e.g. x = 0
at 1955). Use this model to approximate the Philippine population during the years
1955, 1965, 1975, and 1985. Round of answers to the nearest thousand.
Solution.
0
10
20
30
20,000,000 25,706,000 33,040,000 42,467,211
C
O
t
T
1. A barangay has 1,000 individuals and its population doubles every 60 years. Give
an exponential model for the barangay. What is the barangays population in 10
years?
EP
E
2. A bank offers a 2% annual interest rate, compounded annually, for a certain fund.
Give an exponential model for a sum of P10,000 invested under this scheme. How
much money will there be in the account after 20 years?
4. The half-life of a radioactive substance is 1200 years. If the initial amount of the
substance is 300 grams, give an exponential model for the amount remaining
after t years. What amount of substance remains after 1000 years?
81
Lesson 13: Exponential Functions, Equations, and

Inequalities
among exponential functions, exponential equations and exponential inequality.
Lesson Outline:
1. Exponential functions, exponential equations and exponential inequalities
PY
Definition: An exponential expression is an expression of the form abx-c + d,

where (b > 0, b 1).
The definitions of exponential equations, inequalities and functions are shown below.
Exponential Equation Exponential Inequality Exponential Function
An equation involving An inequality
exponential
involving exponential
expressions
expressions
Example
Function of the form

f(x) = bx (b > 0, b 1)
C
O
Definition
or
EP
E
An exponential equation or inequality can be solved for all x values that satisfy the
equation or inequality (Lesson 13).An exponential function expresses a relationship
between two variables (such as x and y), and can be represented by a table of
values or a graph (Lessons 14 and 15).
Solved Examples
Determine whether the given is an exponential function, an exponential equation, an

exponential inequality, or none of these.
1. f(x) = 5x2
(Answer: None of these)
x
2. 2 (1/2)
(Answer: Exponential inequality)
4x
3. 7 = y
(Answer: Exponential function)
4. 4(10x - 2) = 500
(Answer: Exponential equation)
5. 7 < 14x + 3
(Answer: Exponential inequality)
x
6. y = 0.5
(Answer: Exponential function)

Determine whether the given is an exponential function, an exponential equation, an
exponential inequality or none of these.
1. 49x = 72
2. 3 < 9x
3. y = 81x
4. 3(15x) = 45
5. 3 9x -1
6. y = 1.25x
82
Lesson 14:
Inequalities
Solving
Exponential
Equations
and
exponential equations and inequalities, and solve problems involving exponential
equations and inequalities
Lesson Outline:
PY
1. Solve exponential equations

2. Solve exponential inequalities
One-to-one Property of Exponential Functions
If x1 x2, then
. Conversely, if
then x1 = x2.
Example 1. Solve the equation 4x 1 = 16.
C
O
Solution. Write both sides with 4 as the base.

4x 1 = 16
4x 1 = 42
x=2+1
EP
E
x=3
x1=2
Alternate Solution. Write both sides with 2 as the base.

4 x 1 = 16
(22)x 1 = 24
22(x 1) = 24
2(x 1) = 4
2x 2 = 4
2x = 6
x=3
Example 2. Solve the equation 125x1 = 25x+3.

Solution. Both 125 and 25 can be written using 5 as the base.
125x1 = 25x+3
(53)x1 = (52)x+3
83
53(x 1) = 52(x+3)
3(x 1) = 2(x + 3)
3x 3 = 2x + 6
x=9
Example 3. Solve the equation
PY
2x2 = x + 3
(2x 3)(x + 1) = 0
2x 3 = 0 or x + 1 = 0
x = 3/2 or x = 1
C
O
2x2 x 3 = 0
Property of Exponential Inequalities
If b > 1, then the exponential function y = bx is increasing for all x. This means
that bx< by if and only if x < y.
EP
E
If 0 < b < 1, then the exponential function y = bx is decreasing for all x. This
means that bx> by if and only if x < y.
Example 4. Solve the inequality 3x< 9x2.
3x< (32)x2
3x< 32(x2)
3x< 32x4
Since the base 3 > 1, then this inequality is equivalent to

x < 2x 4 (the direction of the inequality is retained)
4 < 2x x
4<x
The solution set to the inequality is
84

Solution. Since
x+5
3x
, then we write both sides of the inequality with
as the
base.
x+5
3x
x+5
3x
x+5
6x
x + 5 6x
< 1, then this inequality is equivalent to
PY
Since the base
(the direction of the inequality is reversed)
5 5x
1x
The solution set is
C
O
5 6x x
Zn-71, but only
of this amount remains after some time. How much time has
EP
E
passed?
Example 6. The half-life of Zn-71 is 2.45 minutes.2 At t = 0, there were y0 grams of
Solution. Using exponential models in Lesson 12, we can determine that after t
minutes, the amount of Zn-71 in the substance is
.
We solve the equation
t = 19.6
Thus, 19.6 minutes have passed since t = 0.
http://www.periodictable.com/Isotopes/030.71/index.p.full.html
85
Solved Examples
Solve for x in the following equations or inequalities.
1. 3x = 81
3.
Solution.
Solution.
3x = 34
x=4
2. 57-x = 125
4. 5x > 25x+1
Solution.
Solution.
5x > (52)x+1
57-x = 53
-x = 3 7
5x > 52x+2
7- x = 3
x > 2x + 2
x 2x > 2
EP
E
-x = -4
x=4
C
O
PY
-x > 2
5. At time t = 0, 480 grams of an isotope with a half life of 30 hours is present. How
much time will have elapsed when only 15 grams remain?
Solution. The amount of substance after t hours
We solve the equation
t = 150
Thus, 150 hours have passed since t = 0.
86

In Exercises 1-10, solve for x.
1. 169x = 13x
6. 4x+1 =
2. 7x =
3.
7. 53x+8 = 252x
=
8. 45x-13 =
4. 43x+2 < 64
PY
9. 10x> 100-2x 5
10. 49x = 3432x-3
5.
C
O
11. How much time is needed for a sample of Pd-100 to lose 93.75% of its original
amount? Pd-100 has a half-life of 3.634 days.3
EP
E
12. A researcher is investigating a specimen of bacteria. She finds that the original
1000 bacteria grew to 2,048,000 in 60 hours. How fast does the bacteria (a)
double? (b) quadruple?
http://www.periodictable.com/Isotopes/046.100/index.html
87
Lesson 15: Graphing Exponential Functions

Learning Outcome(s): At the end of the lesson, the learner is able to represent an
exponential function through its (a) table of values, (b) graph, and (c) equation, find
the domain and range of an exponential function, determine the intercepts, zeroes,
and asymptotes of an exponential function, and graph exponential functions
Lesson Outline:
1. Graphs of f(x) = bx for b > 1 and for 0 < b < 1
2. Domain, range, intercepts, zeroes, and asymptotes.
PY
In the following examples, the graph is obtained by first plotting a few points. Results
will be generalized later on.
Example 1. Sketch the graph of f(x) = 2x.
C
O
Solution.
Step 1: Construct a table of values of ordered pairs for the given function. The table
of values for f(x) = 2x is as follows:
-4
1/16
-3
1/8
-2
1/4
-1
1/2
0
1
x
f(x)
1
2
2
4
3
8
Step 2: Plot the points found in the table, and connect them using a smooth curve.
y
8
EP
E
y
8
4 3 2 1
Plotting of1points for f(x) = 2
4 3 2 1
1f(x) = 2
Graph of
It can be observed that the function is defined for all values of x, is strictly increasing,
and attains only positive y-values. As x decreases without bound, the function
approaches 0, i.e., the line y = 0 is a horizontal asymptote.
88
Example 2. g(x) = (1/2)x

Step 1: The corresponding table of values of x and y for g(x) = (1/2)x is as follows:
x
g(x)
-3
8
-2
4
-1
2
0
1
1
1/2
2
1/4
3
1/8
4
1/16
Step 2: Plot the points found in the table and connect them using a smooth curve.
y
8
PY
y
8
2
1
4 3 2 1
x
Plotting of points for1
g(x) = (1/2)
C
O
4 3 2 1
2
1
x
Graph of 1
g(x) = (1/2)
EP
E
It can be observed that the function is defined for all values of x, is strictly
decreasing, and attains only positive values. As x increases without bound, the
function approaches 0, i.e., the line y = 0 is a horizontal asymptote.
In general, depending on the value of b, the graph of f(x) = bxhas the following grap
b>1
0<b<1
y
89
PROPERTIES OF EXPONENTIAL FUNCTIONS:

1.
2.
3.
4.
5.
The domain is the set of all real numbers.

The range is the set of all positive real numbers.
It is a one-to-one function. It satisfies the Horizontal Line Test.
The y-intercept is 1. There is no x-intercept.
The horizontal asymptote is the line y = 0 (or the x-axis). There is no vertical
asymptote.
6. The function is increasing if b > 1, and is decreasing if 0 < b < 1.
PY
Solved Examples
1. Graph the functions f(x) = 3x and g(x) = 4x in the same coordinate plane. Indicate
the domain, range, y-intercept, and horizontal asymptote. Compare the two graphs.
-2
1/9
1/16
-1
1/3
1/4
0
1
1
1
3
4
EP
E
x
f(x)
g(x)
C
O
Solution. For both these functions, the base is greater than 1. Thus, both functions
are increasing. The following table of values will help complete the sketch.
For both functions:

Domain: Set of all real numbers
Range: Set of all positive real numbers
y-intercept: 1. There is no x-intercept
Horizontal Asymptote: y = 0
The two graphs have the same domain, range, y-intercept, and horizontal asymptote.
However, the graph of g(x) = 4x rises faster than does f(x) = 3x as x increases, and is
closer to the x-axis if x < 0.
90
2. g(x) = 4
-x
Solution. The function g(x) = 4-x can be written as g(x) =
. This is an exponential
function with base b < 1. Thus, the function is decreasing. The following table of
values will help complete the sketch.
-1
4
0
1
1
1/4
2
1/16
C
O
PY
x
f(x)
EP
E
Domain: Set of all real numbers

Range: Set of all positive real numbers
y-intercept: 1. There is no x-intercept
Construct a table of values for the given functions below using (a) the values of
x = -2, -1, 0, 1, 2. (b) Sketch their graphs on a coordinate plane. (c) For each
function, label the domain, range, y-intercept and horizontal asymptote.
1. f(x) =
2. f(x) = 6x
3. f(x) = 3-x
91
Lesson 16: Graphing Transformations of Exponential

Functions
Learning Outcome(s): At the end of the lesson, the learner is able to graph
exponential functions.
Lesson Outline:
PY
1. Vertical and horizontal reflection

2. Stretching and shrinking
3. Vertical and horizontal shifts
Reflecting Graphs
Example 1. Use the graph of y = 2x to graph the functions y = 2x and y = 2x.
C
O
Solution. Some y-values are shown on the following table.
y = 2x
0.125
0.25
0.5
y = 2x
0.125
0.25
0.5
y = 2x
0.5
0.25
0.125
EP
E
The y-coordinate of each point on the graph of y = 2x the negative of the ycoordinate of the graph of y = 2x. Thus, the graph of y = 2x is the reflection of the
graph of y = 2x about the x-axis.
The value of y = 2x at x is the same as the value of y = 2x at x. Thus, the graph of
y = 2x is the reflection of the graph of y = 2x about the y-axis.
The corresponding graphs are shown below.
92
The results in Example 1can be generalized as follows:

Reflection
The graph of y = f(x) is the reflection about the x-axis of the graph of y = f(x).
The graph of y = f(x) is the reflection about the y-axis of the graph of y = f(x).
Example 2.Use the graph of y = 2x to graph the functions y = 3(2x) and y = 0.4(2x).
y = 2x
0.125
0.25
0.5
y = 3(2x)
0.375
0.75
1.5
y = 0.4(2x)
0.05
0.1
0.2
12
24
0.4
0.8
1.6
3.2
PY
C
O
The y-coordinate of each point on the graph of y = 3(2x) is 3 times the y-coordinate of
each point on y = 2x. Similarly, the y-coordinate of each point on the graph of y =
0.4(2x) is 0.4 times the y-coordinate of each point on y = 2x.
EP
E
The graphs of these functions are shown below.
Observations.
1. The domain for all three graphs is the set of all real numbers.
2. The y-intercepts were also multiplied correspondingly. The y-intercept of y = 3(2x)
is 3, and the y-intercept of y = 0.4(2x) is 0.4.
3. All three graphs have the same horizontal asymptote: y = 0.
4. The range of all three graphs is the set of all y > 0.
93
The results of Example 2 can be generalized as follows.

Vertical Stretching or Shrinking
Let c be a positive constant. The graph of y = cf(x) can be obtained from the graph of
y = f(x) by multiplying each y-coordinate by c. The effect is a vertical stretching (if c >
1) or shrinking (if c < 1) of the graph of y = f(x).
Example 3. Use the graph of y = 2x to graph y = 2x 3 and y = 2x + 1.

y=2
0.125
0.25
0.5
y = 2x 3
2.875
2.75
2.5
y = 2x + 1
1.125
1.25
1.5
PY
C
O
EP
E
Observations.
1. The domain for all three graphs is the set of all real numbers.
2. The y-intercepts and horizontal asymptotes were also vertically translated from the
y-intercept and horizontal asymptote of y = 2x.
3. The horizontal asymptote of y = 2x is y = 0. Shift this 1 unit up to get the horizontal
asymptote of y = 2x + 1 which is y = 1, and 3 units down to get the horizontal
asymptote of y = 2x 3 which is y = 3.
4. The range of y = 2x + 1 is all y > 1, and the range of y = 2x 3 is all y > 3.
94

Vertical Shifts
Let k be a real number. The graph of y = f(x) + k is a vertical shift of k units up (if k >
0) or k units down (if k < 0) of the graph of y = f(x).
Example 4. Use the graph of y = 2x to graph y = 2x2and y = 2x+4

y = 2x
0.125
0.25
0.5
y = 2x2
0.031
0.063
y = 2x+4
PY
0.125
0.25
0.5
16
32
64
128
C
O
EP
E
Observations. 1. The domain for all three graphs is the set of all real numbers.
2. The y-intercepts changed. To find them, substitute x = 0 in the function. Thus, the
y-intercept of y = 2x+4 is 24 = 16 and the y-intercept of y = 2x2 is 22 = .25.
3. The horizontal asymptotes of all three graphs are the same (y = 0). Translating a
graph horizontally does not change the horizontal asymptote.
4. The range of all three graphs is the set of all y > 0.
95

Horizontal Shifts
Let k be a real number. The graph of y = f(x k) is a horizontal shift of k units to the
right (if k > 0) or k units to the left (if k < 0) of the graph of y = f(x).
Solved Examples
1. Sketch the graph of F(x) = 3x+1 2, then state the domain, range, y-intercept, and
horizontal asymptote.
Solution.
PY
Transformation: The base function f(x) = 3x will be shifted 1 unit to the left and 2 units
down.
EP
E
Domain: All real numbers
C
O
Steps in Graph Sketching:

Step 1: Base function: f(x) = 3x ; y-intercept: (0,1) ; horizontal asymptote: y = 0
Step 2: The graph of F(x) is found by shifting the graph of the function f left one unit
and down two units.
Step 3: The y-intercept of f(x) (0,1) will shift to the left by one unit and down two units
towards (1, 1). This is not the y-intercept of F(x).
Step 4: The horizontal asymptote will be shifted down two units, which is y = 2.
Step 5: Find additional points on the graph; F(0) = 30+1 2 = 1 and F(1) =31+1 2 = 7.
[(0,1) and (1,7)]
Step 6: Connect the points using a smooth curve.
Range: (2, )
y-intercept: (0,1)
2. Sketch the graph of G(x) = 4
, then state the domain, range, y-intercept,
and horizontal asymptote.
96
Solution.
Transformation: The base function g(x) = (1/2)x will be stretched 4 units (that is,
every y-value will be multiplied by 4), then will be shifted 1 unit upward.
Steps in Graph Sketching:
Step 1: Base function: g(x) =
; y-intercept: (0,1) ; horizontal asymptote: y = 0

Range: (1, )
y-intercept: (0,5)
C
O
PY
Step 2: The graph of G(x) is obtained by stretching the graph of g by four units then
shifting the graph upward by one unit.
Step 3: Since the graph will be stretched by 4 units, the y-intercept of g(x) (0,1) will
be at (0,4), then will be shifted again by 1 unit upward to get (0, 5). This is the
y-intercept of G(x).
Step 4: The horizontal asymptote will be shifted 1 unit upward, which is y = 1.
Step 5: Find additional points in the graph: G(-1) = 4(1/2)-1 + 1 = 9 and
G(3) = 4(1/2)3 + 1 = 3/2. [(1,1/2) and (3, 3/2)]
Step 6: Connect the points using a smooth curve.
EP
E

In Exercises 1-3, (a) use transformations to describe how the graph is related to its
base exponential function y = bx,
(b) sketch the graph, (c)
identify its domain, range, y-intercept, and horizontal asymptote.
1. F(x) = 23x
2. G(x) = (1/4)x+1 4
3. H(x) = 2(3x1)
4. Find an exponential function of the form f(x) = abx + c such that the y-intercept is
5, the horizontal asymptote is y = 10, and f(2) = 35.
5. Give the range of the function y = 3x for 10 x 10.
97

1. Solve for x.
[10]
a. 3-x = 27x+2
b.
2. Solve the inequality 5x>
[10]
3. The population of a certain city doubles every 50 years.
[15]
(a) Give an exponential model for this situation.
PY
(b) By what factor does the population increase after 30 years?

(c) If the citys population is currently 100,000, how long will it take for the
population to exceed 400,000?
a. f(x) = 3x-2 + 1
C
O
4. Graph the following functions. Label all intercepts and asymptotes. Indicate the
domain and range.
[15]
b. h(x) = (0.1)x+2 1

1. Solve for x in the following equations.
b. 81-2x = 162x-1
EP
E
a.
[10]
2. Solve the inequality
[10]
3. Maine decides to participate in an investment that yields 3.75% interest annually.

If she invests 12,500, how much will her investment be after 5 years?
[10]
4. The population of a certain bacteria colony is modeled by the function

P(x) = 500e0.05t, where P(x) is the bacteria population after t minutes. Find the
bacteria population after half an hour.
[10]
5. Graph the function f(x) = 2(1/2)x-1 . Label all intercepts and asymptotes. Indicate
the domain and range.
[10]
98
Lesson 17: Introduction to Logarithms

Learning Outcome(s): At the end of the lesson, the learner is able to represent reallife situations using logarithmic functions and solve problems involving logarithmic
functions.
Lesson Outline:
1. Logarithms, including common and natural logarithms
2. Applications (Richter scale, decibels, pH levels)
PY
Definition: Let a, b, and c be positive real numbers such that b 1. The logarithm
of a with base b is denoted by logba, and is defined as
c = logba if and only if a = bc
C
O
Reminders.
1. In both the logarithmic and exponential forms, b is the base. In the exponential
form, c is an exponent; this implies that the logarithm is actually an exponent.
Hence, logarithmic and exponential functions are inverses.
2. In the logarithmic form logbx, x cannot be negative.
3. The value of logbx can be negative.
EP
E
Definition: Common logarithms are logarithms with base 10; logx is a short
notation for log10x.
Definition: Natural logarithms are logarithms to the base e (approximately
2.71828), and are denoted by ln. In other words, lnx is another way of
writing logex.
Example 1. Rewrite the following exponential equations in logarithmic form,

whenever possible.
a. 53 = 125
b. 72 = 1/49
c. 102 = 100
d. (2/3)2 = 4/9
f. 40 = 1
g. 7b = 21
h. e2 = x
i. (2)2 = 4
e. (0.1)4 = 10000
Solution.
a. log5125 = 3
b. log7(1/49) = 2
c. log100 = 2
d. log2/3(4/9) = 2
e. log0.110000 = 4
f. log41 = 0
g. log721 = b
h. lnx = 2
i. cannot be written in logarithmic form
99
Example 2. Rewrite the following logarithmic equations in exponential form.

a. log m = n
e. log42 =
Solution.
b. log381 = 4
f. log100.001 = 3
c.
5=2
g. ln8 = a
d. log3/4(64/27) = 3
a. 10n = m
e. 41/2 = 2
b. 34 = 81
f. 103 = 0.001
=5
c.
a
g. e = 8
d. (3/4)3 = 64/27
Example 3. Find the value of the following logarithmic expressions.

b. log9729
f. log55
Solution.
a. 5
b. 3
c. log 0.001
c. 3
d. 4
d. log1/216
PY
a. log232
e. log71
e. 0
f. 1
C
O
Applications. Some of the most common applications in real-life of logarithms are

the Richter scale, sound intensity, and pH level.
In 1935, Charles Richter proposed a logarithmic scale to measure the intensity of an
earthquake. He defined the magnitude of an earthquake as a function of its
amplitude on a standard seismograph. The following formula produces the same
results, but is based on the energy released by an earthquake.4
Earthquake Magnitude on a Richter scale
EP
E
The magnitude R of an earthquake is given by
where E (in joules) is the energy released by the earthquake (the quantity 104.40
joules is the energy released by a very small reference earthquake).
The formula indicates that the magnitude of an earthquake is based on the logarithm
of the ratio between the energy it releases and the energy released by the reference
earthquake.
Example 4. Suppose that an earthquake released approximately 1012 joules of
energy. (a) What is its magnitude on a Richter scale? (b) How much more energy
does this earthquake release than the reference earthquake?
Solution.
(a) Since E = 1012, then
Since by definition, log 107.6 is the exponent by which 10 must be raised to obtain
107.6, then log 107.6 = 7.6.
Thus, R =
4
Barnett, R. A., Ziegler, M. R., Byleen, K. E., & Sobecki, D. (2008). Precalculus. New York: McGraw-Hill.
100
(b)
This earthquake releases 1012/104.40

more energy than the reference earthquake.
107.6
39810717
times
Sound Intensity5
In acoustics, the decibel (dB) level of a sound is
where I is the sound intensity in watts/m2 (the quantity 1012 watts/m2 is least audible
sound a human can hear).
PY
Example 5. The decibel level of sound in a quiet office is 106watts/m2. (a) What is
the corresponding sound intensity in decibels? (b) How much more intense is this
sound than the least audible sound a human can hear?
Solution.
C
O
Since by definition, log 106 is the exponent by which
(a)
10 must be raised to obtain 106, then log 106 = 6.

Thus, D = 10(6) = 60 decibels.
(b) This sound is 106/1012 = 106 = 1,000,000 times more intense than the least
audible sound a human can hear.
Acidity and the pH scale6
EP
E
The pH level of a water-based solution is defined as

pH = log[H+],
where [H+] is the concentration of hydrogen ions in moles per liter. Solutions with a
pH of 7 are defined neutral; those with pH < 7 are acidic, and those with pH > 7 are
basic.
Example 6. A 1-liter solution contains 0.00001 moles of hydrogen ions. Find its pH
level.
Solution. Since there are 0.00001 moles of hydrogen ions in 1 liter, then the
concentration of hydrogen ions is 105 moles per liter.
The pH level is log 105. Since log 105 is the exponent by which 10 must be raised
to obtain 105, then log 105 = 5.
Thus, pH = log 105 = (5) = 5.
Young, C. (2012). College algebra (3rd ed). Hoboken, NJ: John Wiley & Sons.
Stewart, J., Redlin, L., & Watson, S. (2012). Precalculus: Mathematics for calculus (6th ed). Belmont,
CA: Brooks/Cole, Cengage Learning.
101
Solved Examples
In numbers 1-3, find the value of the following logarithmic expressions.
1.
2.
3.
Answers.
1. 4
2. 2
3. 1
In numbers 4-6, rewrite the following expressions in logarithmic form, whenever
possible.
4. 16 = 24
5. 9 =
6. = 3-2
PY
Answers.
4.
5.
6.
In numbers 7-9, rewrite the following logarithmic equations in exponential form,
whenever possible.
7.
8.
9. ln x =1
Answers.
7. 32 = 9
8. 161/2 = 4
9. e1 = x
C
O
10. What is the magnitude in the Richter scale of an earthquake that released 1014
joules of energy? How much more energy does this earthquake release than that
of the reference earthquake?
Answer. Magnitude
. The earthquake
14
4.40
9.6
released 10 /10 = 10 = 3981071706 times more energy than that by the
reference earthquake.
EP
E
Answer. Sound intensity
11. Suppose the intensity of sound of a jet during takeoff is 100 watts/m2. What is the
corresponding sound intensity in decibels? How much more intense is this sound
than the least audible sound a human can hear?
decibels. This sound is 102/1012 = 1014 times more intense than the least
audible sound a human can hear.
In numbers 1-3, find the value of the following logarithmic expressions.

1.
2.
3.
In numbers 4-6, rewrite the following exponential equations in logarithmic form.
4. 81 = 92
5.12 =
6. = 72
In numbers 7-9, rewrite the following logarithmic equations in exponential form.
7.
8.
9.
10. What is the magnitude in the Richter scale of an earthquake that released 1016
joules of energy?
11. A 1-liter solution contains 108 moles of hydrogen ions. Determine whether the
solution is acidic, neutral, or basic.
102
Lesson 18: Logarithmic Functions, Equations, and

Inequalities
among logarithmic function, logarithmic equation, and logarithmic inequality.
Lesson Outline:
1. Logarithmic equations, logarithmic inequalities, and logarithmic functions
Logarithmic Equation
Logarithmic Inequality
Logarithmic Function
An equation involving
logarithms.
An inequality involving
logarithms.
Function of the form

f(x) = logbx (b > 0, b 1).
ln x 2 ln x
g x log3 x
log x 2 4
Example
C
O
Definition
PY
The definitions of exponential equations, inequalities and functions are shown below.
A logarithmic equation or inequality can be solved for all x values that satisfy the
equation or inequality (Lesson 21). A logarithmic function expresses a relationship
between two variables (such as x and y), and can be represented by a table of
values or a graph (Lesson 22).
EP
E
Solved Examples
1. g(x) =
(Answer: Logarithmic Function)
2. y =
(Answer: Logarithmic Function)
3.
(Answer: Logarithmic Equation)
4.
(Answer: Logarithmic Inequality)
Determine whether the given is a logarithmic function, a logarithmic equation, a

logarithmic inequality or neither.
5.
(Answer: Logarithmic Equation)

Determine whether the given is a logarithmic function, a logarithmic equation, a
logarithmic inequality or neither.
1.
4.
>
=2
2. h(x) =
5.
=2
3. 2 + y =
103
Lesson 19: Basic Properties of Logarithms

Learning Outcome(s): At the end of the lesson, the learner is able to apply basic
properties of logarithms and solve problems involving logarithmic equations
Lesson Outline:
1. Basic properties of logarithms.
2. Simplifying logarithmic expressions.
PY
Definition: Let b and x be real numbers such that b > 0 and b 1, the basic
properties of logarithms are as follows:
1. logb1 = 0
3. If x > 0, then
C
O
2. logbbx = x
Example 1. Use the basic properties of logarithms to find the value of the following
logarithmic expressions.
Solution.
a. log10 = log10101 = 1
d. log5(1/125)
e.
f. log1
(Property 2)
(Property 2)
EP
E
b. lne3 = logee3 = 3
c. log464
b. lne3
a. log10
c. log464 = log443 = 3
(Property 2)
d. log5(1/125) = log553 = 3
(Property 2)
e.
(Property 3)
=2
f. log1 = 0
(Property 1)
EXAMPLE 2. Suppose you have seats to a concert featuring your favorite musical
artist. Calculate the approximate decibel level associated if a typical concerts sound
intensity is 10-2 W/m2. (Refer to Lesson 17 for a discussion of sound intensity).
Solution.
D = 10
D = 10
D = 10
D = 10 10 (Property 2)
D = 100 dB
Answer. A concerts decibel level is 100dB.
104
EXAMPLE 3. Calculate the hydrogen ion concentration of vinegar that has a pH level
of 3.0. (Refer to Lesson 17 for a discussion of pH levels).
Solution.
pH = log[H+]
3.0 = log[H+]
3.0 = log[H+]
103.0 =
PY
103.0 = [H+] (Property 3)

Answer. The hydrogen ion concentration is 103.0 moles per liter.
Solved Examples
a.
b.
c.
Solution.
=1
b.
= 5 (Property 3)
e.
f.
= x2
EP
E
c.
d.
a.
C
O
1. Use the basic properties of logarithms to find the value of the following logarithmic
expressions:
d.
= 0 (Property 1)
e.
f.
=x+1
= 2
2. Calculate the sound intensity in watts/m2 of a 65-decibel sound. (Refer to Lesson

17 for a discussion of sound intensity).
Solution.
Solve
.
.
(Property 3)
watts/m2.
105

In numbers 1-5, use the three basic properties to find the value of the logarithm
expressions below:
1.
2.
3.
4.
5.
Lesson 20: Laws of Logarithms
PY
6. To measure the brightness of a star from earth, the brightness of the star Vega is
used as a reference, and is assigned a relative intensity I0 = 1. The magnitude m of
any given star is defined by m = 2.5 log I, where I is the relative intensity of that
star.7 (a) What is the magnitude of Vega? (b) Suppose that light arriving from
another star has a relative intensity of 5.32. What is the magnitude of this star?
Lesson Outline:
1. Laws of logarithms
2. Change of base formula
C
O
Learning Outcome(s): At the end of the lesson, the learner is able to illustrate the
laws of logarithms.
(Example: log2(3x) = log23 + log2x)

(Example: log3(4/5) = log34 log35)
(Example: log536 = log562 = 2log56)
EP
E
1. logb(uv) = logbu + logbv

2. logb(u/v) = logbu logbv
3. logbun = nlogbu
. For u > 0, v > 0, then
Laws of Logarithms.Let b > 0, b 1 and let n
Example 1. Use the properties of logarithms to expand each expression in terms of

the logarithms of the factors. Assume each factor is positive.
a. log(ab2)
Solution.
log(ab2) = loga + logb2
= loga + 2logb
b. log3(3/x)3
Solution.
log3(3/x)3 = 3log3(3/x)
= 3(log33 log3x)
= 3(1 log3x) = 3 3log3x
7
Crauder, B., Evans, B., & Noell, A. (2008). Functions and change: A modeling approach to college
algebra and trigonometry. Boston: Houghton Mifflin.
106
c. ln[x(x 5)]
Solution.
ln[x(x 5)] = lnx + ln(x 5)
Example 2. Use the properties of logarithm to condense the expressions as a single

logarithm.
a. log2 + log3
PY
Solution.
log2 + log3 = log(23)
b. 2lnx lny
Solution.
2lnx lny = lnx2 lny
EP
E
c. log5(x2) 3log5x
= ln(x2/y)
C
O
= log6
Solution.
log5(x2) 3log5x = log5(x2) log5(x3)

= log5(x2/x3)
= log5(1/x)
= log5(x1)
= log5x
d. 2 log5
Solution.
2 = 2(1) = 2(log10) = log102 = log100

2 log5 = log100 log5
= log(100/5)
= log20
107
Change-of-base formula
PY
Any logarithmic expression can be expressed as a quotient of two logarithmic

expressions with a common base. Let a, b, and x be positive real numbers,
with a 1, b 1:
Example 3. Use the change-of-base formula to rewrite the following logarithmic

expressions to the indicated base.
a. log64 (change to base 2)
C
O
Solution.
log64
EP
E
b. log1/22 (change to base e)
log1/22
108
Solved Examples
1. Use the properties of logarithms to expand the expressions as a sum, difference
or multiple of logarithms.
a.
PY
Solution.
b.
C
O
Solution.
=
=
c.
EP
E
Solution.
2. Use the properties of logarithms to condense the expressions as a single

logarithm.
a.
Solution.
b.
109
Solution.
=
=
c.
)+2
Solution.
)+
)+
PY
)+2
C
O
3. Use the change of base formula to rewrite the following logarithmic expressions to
the indicated and then compute the approximate value using a calculator.
a.
(change to base 10)
EP
E
Solution.
2.0437
b.
(change to base 3)
Solution.
110

1. Use the properties of logarithms to expand the expressions as a sum, difference
or multiple of logarithms
1.
2.
3.
2. Use the properties of logarithms to condense the expressions as a single

logarithm.
4.
5.
6.
(change to base 10)
8.
(change to base 3)
9.
C
O
7.
PY
3. Use the change of base formula to rewrite the following logarithmic expressions
to the indicated and then compute the approximate value using a calculator.
(change to base e)
Equations and
Lesson 21: Solving Logarithmic

Inequalities
EP
E
logarithmic equations and inequalities and solve problems involving logarithmic
functions, equations, and inequalities
Lesson Outline:
1. Solve logarithmic equations

2. Solve logarithmic inequalities
3. Applications to problems in real-life contexts
Property of Logarithmic Equations
If b > 1, then the logarithmic function y = logbx is increasing for all x. If 0 < b < 1, then
the logarithmic function y = logbx is decreasing for all x. This means that logbu = logbv
if and only if u = v.
Techniques. Some strategies for solving logarithmic equations:

1. Rewriting to exponential form;
2. Using logarithmic properties;
111
3. Applying the one-to-one property of logarithmic functions;

4. The Zero Factor Property: If ab = 0, then a = 0 or b = 0.
Example 1. Find the value of x in the following equations.

a. log4(2x) = log410
Solution.
log4(2x) = log410
(one-to-one property)
PY
2x = 10
x=5
Solution.
log3(2x 1) = 2
2x 1 = 32
2x 1 = 9
EP
E
2x = 10
(changing into exponential form)
b. log3(2x 1) = 2
C
O
Check: 5 is a solution since log4(25) = log4(10) is defined.
x=5
Check: 5 is a solution since log3(2(5) 1) = log3(9) is defined.
c. logx16 = 2
Solution.
logx16 = 2
x2 = 16
x2 16 = 0
(x + 4)(x 4) = 0
(factorization using a2 b2 = (a + b)(a b))
x = 4, 4
Check: 4 is a solution since log4(16) is defined. However, 4 is not a solution
since log4(16) is not defined (the base cannot be negative).
112
d. log2(x + 1) + log2(x 1) = 3
Solution.
log2 [(x + 1)(x 1)] = 3
(using the property logbu+ logbv = logb(uv))
(x + 1)(x 1) = 23
(note: Zero Factor Property cannot be used yet)
x2 1 = 8
x2 9 = 0
(multiplication of two binomials)

(factorization using a2 b2 = (a + b)(a b))
(x + 3)(x 3) = 0
PY
x = 3, 3
e. logx2 = 2
Solution A.
logx2 = 2
x2 = 102
C
O
Check: 3 is a solution since log2(3+1) and log2(31) are defined. However, 3

is not a solution since log2(3+1) = log2(2) is not defined.
x2 = 100
x2 100 = 0
EP
E
(x + 10)(x 10) = 0
x = 10, 10
Check: Both are solutions since log(10)2 and log(10)2 are defined.
Solution B.
logx2 = 2
logx2 = log102 2 = 2(1) = 2(log10) = log102

x2 = 100
x2 100 = 0
(x + 10)(x 10) = 0
x = 10, 10
Check: Both are solutions since log(10)2 and log(10)2 are defined.
Incorrect Method. (using logbun = nlogbu immediately)
113
logx2 = 2
2logx = 2 (This is not a valid conclusion because log x2 = 2log x only if x >
0).
f. (logx)2 + 2logx 3 = 0
Solution.
Let logx = A
PY
A2 + 2A 3 = 0
(A + 3)(A 1) = 0
A = 3 or A = 1
x = 103 = 1/1000 or
x = 10
C
O
logx = 3 or logx = 1
Check: Both are solutions since log(1/1000) and log10 are defined.
Example 2. Use logarithms to solve for the value of x in the exponential equation
2x = 3.
Solution.
EP
E
2x = 3
log2x = log 3
(applying the one-to-one property)
xlog2 = log3
(applying logbun = nlogbu since 2 is positive)
x = log3 / log2 1.58496
Property of Logarithmic Inequalities

If 0 < b < 1, then x1< x2 if and only if logbx1> logbx2.
If b > 1, then x1< x2 if and only if logbx1< logbx2.
Example 3. Solve the following logarithmic inequalities.

a. log3(2x 1) > log3(x + 2)
114
Solution.
Step 1: Ensure that the logarithms are defined.
Then 2x 1 > 0 and x + 2 > 0 must be satisfied.
2x 1 > 0 implies x > 1/2 and x + 2 > 0 implies x > 2.
To make both logarithms defined, then x > 1/2. (If x > 1/2, then x is surely
greater than 2.)
Step 2: Ensure that the inequality is satisfied.
PY
The base 3 is greater than 1.

Thus, since log3(2x 1) > log3(x + 2), then:
2x 1 > x + 2
x > 3 (subtract x from both sides; add 1 to both sides)
C
O
x>3
Hence, the solution is (3, +).
Solution.
EP
E
This means that x > 0.

Rewrite 3 as a logarithm to base 1/5: 3 = log1/5(1/5)3
We obtain the inequality log1/5x >log1/5(1/5)3.
The base is 0.2 = 1/5, which is less than 1.
Thus, since log1/5x >log1/5(1/5)3, then x <(1/5)3 = 125.
Also, x should be positive (from Step 1). Thus, 0 < x < 125.
Hence, the solution is (0, 125).
c.
2 < logx < 2
Solution.
This means that x > 0.
115
Rewrite 2 and 2 as logarithms to the base 10, which are log102 and log102
respectively, obtaining the inequality: log102< logx < log102.
We split the compound inequality into two simple inequalities:
log102< logx and logx < log102
Since the base 10 is greater than 1, simplify both inequalities as
102< x and x < 102
Thus obtaining 1/100 < x < 100, which automatically satisfies the condition in
Step 1.
PY
Hence, the solution is (1/100, 100).
C
O
EXAMPLE 4. The 2013 earthquake in Bohol and Cebu had a magnitude of 7.2, while
the 2012 earthquake that occurred in Negros Oriental recorded a 6.7 magnitude.
How much more energy was released by the 2013 Bohol/Cebu earthquake
compared to that by the Negros Oriental earthquake? (Refer to Lesson 17 for a
discussion of the Richter scale).
Solution. Let EB and EN be the energy released by the Bohol/Cebu and Negros
Oriental earthquakes, respectively. We will determine EB/EN.
EP
E
Solving for EB:
and
Based on the given magnitudes,
Solving for EN:
Thus, EB/EN = 1015.2/1014.45 = 100.75 5.62

The Bohol/Cebu earthquake released 5.62 times more energy than the Negros
Oriental earthquake.
116
EXAMPLE 5. How much more severe is an earthquake with a magnitude of n on a

Richter scale, compared to one with a magnitude of n + 1?
Solution. Let E1 and E2 be the energy released by the earthquakes with magnitude n
and n+1, respectively. We will determine E2/E1.
Based on the given magnitudes,
and
PY
Solving for E1:
C
O
Solving for E2:
= 103/2 31.6
Thus, E2/E1 =
EP
E
These computations indicate that each 1 unit increase in magnitude represents 31.6
times more energy released. (This result may seem to contradict other sources
which state that each 1 unit increase in magnitude represents an earthquake that is
10 times stronger. However, those computations use amplitude as a measure of
strength. The computations above are based on the energy released by the
earthquake).
EXAMPLE 6: Interest compounded annually.

Using the formula A = P(1 + r)n (Lesson 12, Example 5) where A is the future value
of the investment, P is the principal, r is the fixed annual interest rate, and n is the
number of years, how many years will it take an investment to double if the interest
rate per annum is 2.5%?
Solution:
Doubling the principal P, we get A = 2P, r = 2.5% = 0.025,
A P 1 r
2P P 1 0.025
117
2 1.025
log 2 log 1.025
log 2 n log 1.025
log 2
28.07
log1.025
years
PY
Answer: It will take approximately 28 years for investment to double.
C
O
Example 7. (Population growth) The population of the Philippines can be modeled

by the function P(x) = 20,000,000e0.0251x, where x is the number of years since 1955
(e.g. x = 0 at 1955). Assuming that this model is accurate, in what year will the
population reach 200 million?
Solution.
Given P(x) = 200,000,000,
10 = e0.0251x
ln10 = lne0.0251x
EP
E
ln10 = 0.0251x(lne)
200,000,000 = 20,000, 000e0.0251x
ln10 = 0.0251x
x = ln10/0.0251 91 years
1955 + 91 = 2046
Answer. Around the year 2046, the Philippine population will reach 200 million.
Trivia: Based on this model, we will reach 100 million in the year 2019. But last July
2014, the Philippines officially welcomed its 100 millionth baby8. Hence mathematical
models must always be reviewed and verified against new data.
http://newsinfo.inquirer.net/623749/philippines-welcomes-100-millionth-baby
118
EXAMPLE 8. In a bacteria culture, an initial population of 5,000 bacteria grows to

12,000 after 90 minutes. Assume that the growth of bacteria follows an exponential
model f(t) = Aekt representing the number of bacteria after t minutes. (a) Find A and
k, and (b) use the model to determine the number of bacteria after 3 hours.
Solution.
(a) It is given that f(0) = 5,000 and f(90) = 12,000.
Thus, f(0) = Aek(0) = A = 5,000.
Also, f(90) = 5,000ek(90) = 12,000
The exponential model is f(t) = 5,000e0.00973t.
k 0.00973
PY
90k =
Take the ln of both sides to obtain
C
O
(b) 3 hours = 180 minutes; f(180) = 5,000e0.00973(180) 28,813 bacteria
Example 9. Chains or cables

suspended between two points and
acted upon by a gravitational force
follow the shape of a catenary.9 The
is an example of
equation y =
EP
E
such a curve (see figure). Assuming

this is the curve assumed by a
suspended cable, how far apart are
the cables when y = 4? Approximate
your answer to two decimal places.
or
Solution. We have to solve the equation
8ex = e2x + 1
e2x 8ex + 1 = 0
Let u = ex. Then u2 = e2x, and we obtain u2 8u + 1 = 0.
Weisstein, Eric W. "Catenary." From MathWorld--A Wolfram Web Resource.

http://mathworld.wolfram.com/Catenary.html
119
The solutions to this quadratic equation are

Since u = ex then
or
or
To determine the distance between the cables at y = 4, we find the difference

between the two obtained x-values.
The distance is
PY
Solved Examples
1. Find the value/s of x in the following equations/inequalities.
Solution.
15x = 30
x=2
b.
C
O
a.
EP
E
Solution.
102 = 3x 2
3x 2 =100
x=
c.
Solution.
x2 = 121
x2 121 = 0
(x + 11)(x 11) = 0
X = 11, 11
Since log11121 is not defined, hence, x = 4 is the only solution.
120
d.
Solution.
= 34
= 81
PY
9x = 81(x-8)
9x = 81x 648
72x = 648
e.
Solution.
be equal to A
Let
C
O
x=9
(A)2 + 5A + 6 = 0
EP
E
(A + 2)(A + 3) = 0
A = 2 or A = 3
or
x = 52 =
or x = 53 =
f.
Solution.
Ensuring that the logarithms are defined, this means 3x 5 > 0 or x > 5/3.
121
3x 5 < 64
3x < 69
x < 23
< x < 23
(note that x > 5/3 from the first condition)
Therefore, the solution is (5/3, 23).
g.
PY
Solution.
C
O
Ensuring that the logarithms are defined, this means x + 1 > 0 and 2x > 0,
which implies, x > 1 and x > 0, or just simply x > 1.
x + 1 < 2x
x 2x < 1
x < 1
x>1
h.
EP
E
Therefore, the solution is (1, +).
-5 <
<5
Solution.
Ensuring the logarithms are defined, this means x > 0.

5 <
<5
<
<
and
x > 105 and x < 105
Hence, the solution is
122
3. When organisms die, the amount of carbon-14 in its system starts to decrease.
The carbon-14 is about 5,600 years. If a piece of human bone was found to contain
only 1/3 of the carbon-14 it originally had, how long ago did the human die?
Solution. A model for this situation is y = y0(1/2)t/5600, where y is the amount of
carbon-14 in the organism after t years, and y0 is the initial amount of carbon-14.
Since y =
then
PY
Taking the ln of both sides,
The human died approximately 8,876 years ago.
C
O
4. A culture starts at 2,000 bacteria, and doubles every 80 minutes. How long will it
take the number of bacteria to reach 10,000?
Solution. A model for this situation is y = 2000(2)t/80, where y is the number of
bacteria at time t.
If y = 10,000, then 10,000 = 2,000(2)t/80 5 = 2t/80.
Taking the ln of both sides, ln 5 = ln 2t/80 =
EP
E
Thus
It will take approximately 185.7 or 186 minutes for the bacteria to reach 10,000.
5. Under certain circumstances, a rumor spreads according to the equation

, where p(t) is the proportion of the population who has heard of the
rumor at time t days. How long will it take the rumor to reach 80% of the population?
Solution. Solve
0.8 =
0.8 + 12e0.3t = 1
12e0.3t = 0.2
e0.3t = 1/60
0.3t = ln(1/60) t = ln(1/60)/(0.3) 13.6
It will take approximately 14 days for the rumor to reach 80% of the population.
123

Find the value/s of x in the following equations/inequalities.
1.
2.
3.
4.
PY
5. An article from the New Yorker10 states that the strongest earthquake that can be
caused by the San Andreas fault has a magnitude of 8.2 on the Richter scale. It
also states that this is only 6% as strong as the 2011 Japan earthquake, with a
magnitude of 9.0. Verify this information.
C
O
6. Suppose that a fish population t days from now can be modeled by an exponential
function P(t) = Aekt. Suppose that the fish population doubled in 90 days. By how
much will the fish have multiplied from its initial number after 120 days?
7. Suppose that I0 and I denote the light intensity before and after going through a
material. Then according to Beer-Lamberts law11, x =
, where k is a
constant that depends on the material. If k = 0.03 and I0 = 15 lumens, find the line
intensity at a depth of 30 feet.
EP
E
8. The dapdap tree in the Philippines is prone to wasp infestation. Suppose that the
, where x is the number
percent P of defoliation is approximated by
of egg masses in thousands. If the percent of defoliation is 20%, approximately
how many egg masses are there?
Lesson 22: Graphing Logarithmic Functions
Learning Outcome(s): At the end of the lesson, the learner is able to represent a
logarithmic function through its table of values, graph, and equation, find the domain
and range of a logarithmic function, and graph logarithmic functions
Lesson Outline:
1. Graph of y = logbx for b > 1 and for 0 < b < 1

2. Domain, range, intercepts, zeroes, and asymptotes of logarithmic functions
3. Graphs of transformations of logarithmic functions
10
Schulz, K. (2015). The really big one. http://www.newyorker.com/magazine/2015/07/20/the-reallybig-one

11
Stewart, J., Redlin, L., & Watson, S. (2012). Precalculus: Mathematics for calculus (6th ed). Belmont,
CA: Brooks/Cole, Cengage Learning.
124
In the following examples, the graph is obtained by first plotting a few points. Results
will be generalized later on.
Example 1. Sketch the graph of y = log2x.
Solution.
Step 1: Construct a table of values of ordered pairs for the given function. A table of
values for y = log2x is as follows:
1
8
1
4
1
2
PY
1
16
y
C
O
1
O
EP
E
3
4
Plotting of points for of y = log2x
Graph of y = log2x
It can be observed that the function is defined only for x > 0. The function is strictly
increasing, and attains all real values. As x approaches 0 from the right, the function
decreases without bound, i.e., the line x = 0 is a vertical asymptote.
Example 2. Sketch the graph of y = log1/2x.

Solution.
Step 1: Construct a table of values of ordered pairs for the given function. A table of
values for y = log2x is as follows:
1
16
1
8
1
4
1
2
125
8 x
8 x
PY
Graph of y = log1/2x
C
O
Plotting of points for of y = log1/2x
It can be observed that the function is defined only for x > 0. The function is strictly
decreasing, and attains all real values. As x approaches 0 from the right, the function
increases without bound, i.e., the line x = 0 is a vertical asymptote.
EP
E
In general, the graphs of y = logbx, where b > 0 and b 1 are shown below.
y = logbx (b > 1)
y = logbx (0 < b < 1)
126
PROPERTIES OF LOGARITHMIC FUNCTIONS:

1.
2.
3.
4.
5.
The domain is the set of all positive numbers, or {x

| x > 0}.
The range is the set of all positive real numbers.
It is a one-to-one function. It satisfies the Horizontal Line Test.
The x-intercept is 1. There is no y-intercept.
The vertical asymptote is the line x = 0 (or the y-axis). There is no horizontal
asymptote.
Relationship Between the Graphs of Logarithmic and Exponential Functions
PY
Since logarithmic and exponential functions are inverses of each other, their graphs
are reflections of each other about the line y = x, as shown below.
y = bx and y = logbx (0 < b < 1)
EP
E
C
O
y = bx and y = logbx (b > 1)
Example 3. Sketch the graphs of y = 2log2x. Determine the domain, range, vertical
asymptote, x-intercept, and zero.
Solution.
The graph of y = 2log2x can be obtained from the graph of y = log2x by multiplying
each y-coordinate by 2, as the following table of signs shows.
x
log2x
y =2log2x
1/16
4
8
1/8
3
6
2
4
1
2
1
0
0
2
1
2
4
2
4
8
3
6
127
a. Domain: {x | x
, x > 0}
b. Range : {y | y
c. Vertical Asymptote: x = 0
d. x-intercept: 1
EP
E
e. Zero: 1
Analysis:
C
O
PY
The graph is shown below.
Example 4. Sketch the graph of y = log3x 1.

Solution.
Sketch the graph of the basic function y = log3x. Note that the base 3 > 1.
The 1 means vertical shift downwards by 1 unit.

Some points on the graph of y = log3x are (1,0), (3,1), and (9,2).
Shift these points 1 unit down to obtain (1, 1), (3,0), and (9,1). Plot these points.
128
Analysis:
a. Domain: {x | x
, x > 0}
b. Range: {y | y
C
O
PY
The graph is shown below.
d. x-intercept: 3
EP
E
The x-intercept can be obtained graphically. Likewise, we can solve for the xintercept algebraically by setting y = 0:
0 = log3x 1
log3x = 1
x = 31 = 3
e. Zero: 3
Example 5. Sketch the graph of y = log0.25(x + 2).

Solution.
Sketch the graph of the basic function y = log0.25x.Note that the base 0 < 0.25 < 1.
Rewrite the equation, obtaining y = log0.25[x (2)].
The 2 means a horizontal shift of 2 units to the left.
Some points on the graph of y = log0.25x are (1,0), (4, 1), and (0.25,1).
129
Shift these points 2 units to the left to obtain (1,0), (2, 1), and (1.75,1). Plot these
points.
C
O
PY
Graph:
Analysis:
a. Domain: {x | x
, x >2}
EP
E
b. Range : {y | y
(The expression x+2 should be greater than 0 for log0.25(x+2) to be defined. Hence, x
must be greater than 2.)
d. x-intercept: 1
e. Zero: 1
The examples above can be generalized to form the following guidelines for graphing
transformations of logarithmic functions:
Graph of f(x) = alogb(x c) + d
The value of b (either b > 1 or 0 < b < 1) determines whether the graph is increasing
or decreasing.
The value of a determines the stretch or shrinking of the graph. Further, if a is
negative, there is a reflection of the graph about the x-axis.
Based on y = alogbx, the vertical shift is d units up (if d > 0) or d units down (if d < 0),
and the horizontal shift is c units to the right (if c > 0) or c units to the left (if c < 0).
130
Solved Examples
Analyze each of the following functions by (a) using the transformations to describe
how the graph is related to a logarithmic function y =
, (b) identifying the xintercept, vertical asymptote, domain and range. (c) Sketch the graph of the function.
a.) F(x) =
Solution.
.
|x>3}
EP
E
Domain: { x
C
O
PY
The graph of F(x) is shifted 3 units to the right from the graph of f(x) =
Range: all real numbers
Vertical Asymptote: x = 3
x-intercept: (4, 0)
131
b.) G(x) =
Solution.
|x>0}

x-intercept: (0.125, 0)
c.) H(x) =
C
O
Domain: { x
PY
The graph of G(x) is a vertical shift of 3 units downwards from the graph of
g(x) =
.
Solution.
EP
E
The graph of H(x) is a stretch by a factor of 3 from the graph of h(x) =
Domain: { x
|x>0}

x-intercept: (1, 0)
132
The previous examples can be generalized to form the following guidelines for
graphing transformations of logarithmic functions:
Graph of f(x) = alogb(x c) + d
PY
The value of b (either b > 1 or 0 < b < 1) determines whether the graph is increasing
or decreasing.
The value of a determines the stretch or shrinking of the graph. Further, if a is
negative, there is a reflection of the graph about the x-axis.
Based on y = alogbx, the vertical shift is d units up (if d > 0) or d units down (if d < 0),
and the horizontal shift is c units to the right (if c > 0) or c units to the left (if c < 0)
C
O
a. F(x) =
b. G(x) =
EP
E
c. H(x) =
Analyze each of the following functions by (a) using the transformations to describe
how the graph is related to a logarithmic function y =
, (b) identifying the xintercept, vertical asymptote, domain and range. (c) Sketch the graph of the function.
133
Topic Test 1
1. Find the value of the following logarithmic expressions:
a. log4(1/64)
[5]
b. log1/264
2. Express logx + 2logy 3loga as a single logarithm.
[5]
3. Solve for x.
[10]
a.
b.
[10]
PY
5. If a certain sound wave has an intensity of 10-5 W/m2, find its corresponding
decibel value.
[10]
C
O
domain and range.
[10]
a.
b. g(x) = 2
Topic Test 2
[5]
2. Express log56 as a quotient of logarithms to the base 2.
[5]
1. Express lnxy2 as a sum, difference or multiple of logarithms.
3. Solve for x in the following equations.

b.
EP
E
a.
[10]
[10]
5. Felix deposited 50,000 in an investment that earns 5% interest annually. How

many years will his investment be equal to 175,000?
[10]
domain and range.
[10]
a.
b. g(x) = 4
134
Lesson 23:
Interest
Illustrating Simple and Compound
Learning Outcome(s): At the end of the lesson, the learner is able to illustrate
simple and compound interest and distinguish between simple and compound
interest.
Lesson Outline:
PY
1. Simple Interest
2. Compound Interest
Definitions of Terms:
C
O
Lender or creditorperson (or institution) who invests the money or makes the
funds available
Borrower or debtor person (or institution) who owes the money or avails of the
funds from the lender
Origin or loan date date on which money is received by the borrower
Repayment date or maturity date date on which the money borrowed or loan is to
be completely repaid
EP
E
Time or term (t) amount of time in years the money is borrowed or invested; length
of time between the origin and maturity dates
Principal (P) amount of money borrowed or invested on the origin date
Rate(r) annual rate, usually in percent, charged by the lender, or rate of increase of
the investment
Interest (I) amount paid or earned for the use of money

Simple Interest (Is) interest that is computed on the principal and then added to it
Compound Interest (Ic)interest is computed on the principal and also on the
accumulated past interests
Maturity value or future value (F) amount after t years that the lender receives
from the borrower on the maturity date
135
Illustration of Simple and Compound Interest

Example 1. Suppose you won 10,000 pesos and you plan to invest it for 5 years. A
cooperative group offers 2% simple interest rate per year. A bank offers 2%
compounded annually. Which will you choose and why?
Solution.
Investment 1: Simple Interest
1
2
3
4
5
Principal
(P)
Interest
Rate (r)
10,000
2%
2%
2%
2%
2%
Simple Interest
Solution
Answer
(10000)(0.02)(1)
200
(10000)(0.02)(2)
400
(10000)(0.02)(3)
600
(10000)(0.02)(4)
800
(10000)(0.02)(5)
1 000
Investment 2: Compound Interest (Annual)

Rate (r)
2%
2%
2%
2%
2%
10 000 + 200 = 10 200.00

10 000 + 400 = 10 400.00
10 000 + 600 = 10 600.00
10 000 + 800 =10 800.00
10 000 + 1 000 = 11 000.00
Compound Interest
Solution
Answer
Amount at the end of year t

(Maturity Value)
C
O
1
2
3
4
5
Amount at
the start of
year t
10 000
10 200
10 404
10 612.08
10 824.32
(10000)(0.02)(1)
(10200)(0.02)(1)
(10404)(0.02)(1)
(10612.08)(0.02)(1)
(10824.32)(0.02)(1)
Time
(t)
Amount after t years

(Maturity Value)
PY
Time (t)
200
204
208.08
10 000 + 200 = 10 200.00
212.24
10612.08 + 212.24 =10 824.32
216.49
10824.32 + 216.49 = 11 040.81
10 200 + 204 = 10 404.00

10 404 + 208.08 =10 612.08
EP
E
Simple interest remains constant throughout the investment term. In compound

interest, the interest from the previous year also earns interest. Thus, the interest
grows every year.
136
Lesson 24: Simple Interest

Learning Outcome(s): At the end of the lesson, the learner is able to compute
interest, maturity value, and present value in simple interest environment, and solve
problems involving simple interest
Lesson Outline:
PY
1. Compute simple interest

2. Compute maturity value
3. Compute unknown principal, rate, or time
Annual Simple Interest

Is = Prt
Is = simple interest
P = principal, or the amount invested or borrowed
r = simple interest rate
t = term or time in years
C
O
where
EP
E
Example 1: A bank offers 0.25% annual simple interest rate for a particular
deposit. How much interest will be earned if 1 million pesos is deposited in this
savings account for 1 year?
Given: P = 1,000,000
I = 0.25% = 0.0025
t = 1 year
Find: Is
Is = Prt
Is = (1,000,000)(0.0025)(1)
Is = 2,500
Solution:
Answer: The interest earned is P 2,500.

Example 2: How much interest is charged when P50,000 is borrowed
months at an annual interest rate of 10%?
for 9
Given: P = 50,000
= 0.75 year
year
r = 10% = 0.10
t=
Note: When the term is

expressed in months (M), it
should be converted in years by
t= .
Find: Is
137
Solution:
Is = Prt
Is = (50,000)(0.10)( )
Is = (50,000)(0.10)(
)
Is = 3,750
Answer: The simple interest charged is P 3,750.
Principal Rate ( Time Interest

(P)
r)
(t)
(a)
2.5%
4
1,500
36,000
(b)
1.5
4,860
250,000 0.5%
(c)
275
500,000 12.5%
10
(d)
C
O
Solution:
(a) The unknown principal can be obtained by
P=
PY
Example 3: Complete the table below by finding the unknown.
P=
P =15,000
(b) The unknown rate can be computed by
EP
E
r=
r=
r = 0.09 =9%
(c) The unknown time can be calculated by
t=
t=
t = 0.22 years
(d) The unknown simple interest is given by
Is = Prt
Is = (500,000)(0.125)(10)
Is = 625,000
138
Example 4: When invested at an annual interest rate of 7%, the amount earned
P11,200 of simple interest in two years. How much money was originally invested?
Given: r = 7% = 0.07
t = 2 years
IS = 11,200
Find: Amount invested or principal P

Solution:
P=
P = 80,000
Answer: The amount invested is P 80,000.
PY
P=
C
O
Example 5: If an entrepreneur applies for a loan amounting to P500,000 in a bank,

the simple interest of which is P 157,500 for 3 years, what interest rate is being
charged?
Given: P = 500,000
Is = 157,500
Find: r
EP
E
r=
Solution:
t = 3 years
r=
r = 0.105 = 10.5%
Answer. The bank charged an annual simple interest rate of 10.5%.
Example 6: How long will a principal earn an interest equal to half of it at 5% simple
interest?
Given:
Find: t
r = 5% = 0.05
Is = P = 0.5P
Solution:
t=
t=
t = 10 years
139
Answer: It will take 10 years for a principal to earn half of its value at 5% simple
annual interest rate.
Maturity (Future) Value
F = P + Is
where
F = maturity (future) value

P = principal
Substituting Is by Prt gives F = P + Prt, = P(1 + rt)

Maturity (Future) Value
F = P(1 + rt)
P = principal
r = interest rate
t = term/ time in years
C
O
where
PY
Is = simple interest
EP
E
Example 7: Find the maturity value if 1 million pesos is deposited in a bank at an

annual simple interest rate of 0.25% after (a) 1 year (b) 5 years?
Given: P = 1,000,000
r = 0.25% = 0.0025
Find: (a) maturity or future value F after 1 year
(b) maturity or future value F after 5 years
Solution:
(a) When t = 1, the simple interest

is given by
Method 1:
Is = Prt
Is = (1,000,000)(0.0025)(1)
Is = 2, 500
The maturity or future value is
given by
F = P + Is
F = 1,000,000 + 2,500
F = 1,002,500
140
Method 2: To directly solve the future value F,

F = P(1 + rt)
F = (1,000,000)(1 + 0.0025(1))
F = 1,002,500
Answer: The future or maturity value after 1 year is P1,002,500.
(b) When t = 5,
F = P + Is
F = 1,000,000 + 12,500
F = 1,012,500
C
O
Method 2:
F = P(1 + rt)
F = (1,000,000)(1 + 0.0025(5))
F = 1,012,500
PY
Method 1:
Is = Prt
Is = (1,000,000)(0.0025)(5)
Is = 12,500
Answer: The future or maturity value after 5 years is P1,012,500.
Solved Examples:
EP
E
1. What are the amounts of interest and maturity value of a loan for P25,000 at 12%
simple interest for 5 years?
Given: P = 25,000, r = 0.12, t = 5 years
Find: (i) Is
(ii) F
Solution:
(i)
: Is = Prt
Is = (25,000)(0.12)(5)
Answer: Is = 15,000
(ii)
F = P+ Is
F = 25,000 + 15,000
Answer: F = 40,000
2. How much money will you have after 4 years and 3 months if you deposited
P 10,000 in a bank that pays 0.5% simple interest?
Given: P = 10,000, r = 0.005, t = 4.25 years

Find:F
Solution:F = P(1 + rt)
F = (10,000)(1 + 0.005(4.25))
Answer: F = 10,212.25
141
3. At what simple interest rate per annum will P 1 become P 2 in 2 years?

Given: P = 1, F = 2, t = 1
Find: r
Solution: Is = F P = 2 -1 = 1
r=
r=
r = 0.5
PY
Answer: r = 50%
Find: t
Solution: t =
t=
Answer: t = 10 years
C
O
4. How long will 1 million pesos earn a simple interest of 100,000 at 1% per
annum?
Given: P = 1,000,000
Is = 100,000
r = 0.01
EP
E
5. How much should you invest at the simple interest is 7.5% in order to have
P300,000 in 2 years,?
Given: r = 0.075 F = 300,000
t=2
Find: P
Solution: P =
P=
Answer: P = 260,869.57

A. Find the unknown principal P, rate r, time t, and interest I by completing the
table.
Principal (P)
Rate ( r )
Time (t)
Interest (I)
2,000
5%
3
(1)
(2)
12%
5
20,000
88,000
(3)
4
8,000
500,000
9.5%
(4)
285,000
1,000,000
0.5%
12
(5)
142
B. Complete the table by finding the unknown.

Present Value
Rate ( r )
Time (t)
(P)
8,000
8%
6 years
5,000
(8)
1 month
5 years and 3
(10)
12%
months
Interest (I)
(6)
(9)
Maturity
Value (F)
(7)
6000
400,000
C. Solve the following problems.
EP
E
C
O
PY
11. Find the simple interest on a loan of P65,000 if the loan is given at a rate of
20% and is due in 3 years.
12. Amparo invested a certain amount at 10% simple interest per year. After 2
years, the interest she received amounted to P3,000. How much did she
invest?
13. Miko borrowed P25,000 at 10% annual simple interest rate. How much
should he pay after 3 years and 6 months?
14. How long will an amount of money triple at a simple interest rate of 1% per
annum?
15. How long will an amount of P50,000 gain a simple interest of P10,000 at 4%
per annum?
16. At what simple interest rate will an amount of money gain 50% of the principal
in 4 years?
17. At what simple interest rate per annum will P20,000 accumulate to P25,000 in
3 years?
18. If you deposit P5,500 in a bank at an annual simple interest rate of 0.5% ,
how much money will you have after 12 years?
19. How much money should you deposit in a bank so that it will accumulate to
P100,000 at 1% simple annual interest for 10 years?
20. How much should you invest at 6% annual interest rate to obtain a simple
interest of P72,000 in 3 years?
143
Lesson 25: Compound Interest

interest, maturity value, and present value in compound interest environment, and
solve problems involving compound interest
Lesson Outline:
PY
1. Maturity value
2. Present Value
Year (t)
C
O
The following table shows the amount at the end of each year if principal P is
invested at an annual interest rate r compounded annually. Computations for the
particular example P = P100,000 and r = 5% are also included.
Principal = P
Int. rate =r, compounded
annually
Amount at the end of the year

P (1 + r) = P(1 + r)
100,000 1.05 = 105,000
P(1 + r) (1 + r) = P(1 + r)2
EP
E
Principal = P 100,000
Int. rate =5%, compounded
annually
Amount at the end of the
year
105,0001.05 = 110,250
P(1 + r)2 (1 + r) = P(1 + r)3
110,250 1.05 = 121,550.63
P(1 + r)3 (1 + r) = = P(1 + r)4
121,550.63 1.05 = 127,628.16
Maturity (Future) Value and Compound Interest

F= P(1+r)t
where
P = principal or present value
F = maturity (future) value at the end of the term
r = interest rate
The compound interest Ic is given by
Ic = F - P
144
Example 1. Find the maturity value and the compound interest if P10,000 is
compounded annually at an interest rate of 2% in 5 years.
Given: P = 10,000
r = 2% = 0.02
t = 5 years
Find: (a) maturity value F

(b) compound interest Ic
Solution:
F= P(1+r)t
(a)
PY
F = (10,000)( 1 + 0.02)5
F = 11,040. 081
Ic = F P
(b)
Ic = 11,040.81 10,000
C
O
Ic = 1,040.81
Answer: The future value F is P11,040. 81 and the compound interest is P1,040.81.
Example 2. Find the maturity value and interest if P 50,000 is invested at 5%
compounded annually for 8 years.
r = 5% = 0.05
t = 8 years
Given: P = 50,000
Find: (a) maturity value F
EP
E
(b) compound interest Ic
Solution:
(a)
F= P(1+r)t
F = (50,000)( 1 + 0.05)8
F = 73,872.77
(b)
Ic = F P
Ic = 73,872.77 50,000
Ic = 23,872.77
Answer: The maturity value F is P73,872.77 and the compound interest is

P23,872.77.
Example 3.Suppose your father deposited in your bank account P10,000 at an
annual interest rate of 0.5% compounded yearly when you graduate from
kindergarten and did not get the amount until you finish Grade 12. How much will you
have in your bank account after 12 years?
145
Given: P = 10,000
r = 0.5% = 0.005
t = 12 years
Find: F
Solution: The future value F is calculated by
F= P(1+r)t
F = (10,000)(1 + 0.005)12
F = 10,616.78
Answer: The amount will become P10,616.77 after 12 years.
PY
Present Value P at Compound Interest:

The present value or principal of the maturity value F due in t years any rate r
can be obtained from the maturity value formula F= P(1+r)t.
P(1+r)t = F
=
or equivalently,P =
P=
C
O
Solving for the present value P,
EP
E
Present Value P at Compound Interest
where
P = principal or present value

F = maturity (future) value at the end of the term
r = interest rate
Example 4. What is the present value of P50,000 due in 7 years if money is worth
10% compounded annually?
Given: F = 50,000
r = 10% = 0.1
t = 7 years
Find: P
Solution: The present value P can be obtained by
P=
P=
146
P = 25,657.91.
Answer: The present value is P25,657.91.
Example 5.How much money should a student place in a time deposit in a bank that
pays 1.1% compounded annually so that he will have P200,000 after 6 years?
Given: F = 200,000
r = 1.1% = 0.011
t = 6 years
Find: P
Solution: The present value P can be obtained by
PY
P=
P=
P = 187,293.65
Solved Examples
C
O
Answer: The student should deposit P187,293.65 in the bank.
1. Mr. Ocampo invested P150,000 at 10% compounded annually. He plans to get

this amount after 6 years for his sons college education. How much will he get?
r = 10% = 0.1
Given: P = P150,000
Find: F
EP
E
Solution:
t = 6 years
F= P(1+r)t
F = (150,000)( 1 + 0.1)6
Answer: He will get P265,734.15.
2. What is the interest of P25,000 if invested at 4.5% compounded annually in 3

years and 2 months?
Given: P = P25,000
r = 4.5% = 0.045
t=3
years
Find: Ic
Solution:
Answer:
F= P(1+r)t
F = (25,000)( 1 + 0.045)3.1667
F = 28,739.22
Ic = F- P
Ic = 28,739.22 25,000
The interest is P3,739.22.
147
3. Mr. Bautista aims to have his investment grow to P500,000 in 4 years. How much
should he invest in an account that pays 5% compounded annually?
Given: F = 500,000
Find: P
r = 0.05
t = 4 years
Solution: P =
P=
Answer: He should invest P411,351.24.
PY
P = 411,351.24
C
O
4. Mrs. Versoza wants to compare simple and compound interests on a P350,000

investment for 3 and 3 months years.
a. Find the interest if funds earn 6.5% simple interest for 1 year.
b. Find the interest if funds earn 6.5% interest compounded annually.
c. Find the difference between the two interests.
Given: P = 350,000
r = 0.065
t = 3.25 years
Find: a. Is
b. Ic
Solution:
c. Difference between Is and Ic
EP
E
a. Is = Prt
Is = (350,000)(0.065)(3.25)
Answer: The interest is P73,937.50.
b. F= P(1+r)t
F = (350,000)( 1 + 0.065)3.25
F = 429,491.20
Ic = F- P
Ic = 429,491.20 350,000
Answer: The interest is P79,491.20.

c. Difference = Ic Is
Difference = 79,491.20 73,937.50 = 5,553.70
Answer: The difference between the two interests is P5,553.70.
148

A. Find the unknown principal P, rate r, time t, and compound interest Ic by
completing the table.
Compound
Maturity
Principal (P)
Rate ( r )
Time (t)
Interest (Ic)
Value (F)
6,000
8%
12
(1)
(2)
5.5%
6 years and 9
months
(3)
(4)
60,000
9.75%
10 months
(5)
(6)
(7)
1%
(8)
25,000
(9)
7.5%
C
O
PY
12,000
4 years and 6
months
(10)
400,000
B. Solve the following problems on compound interest.

11. Peter borrowed P100,000 at 8% compounded annually? How much will
he be paying after 2 years?
EP
E
12. A time deposit account in a bank yields 5.5% compound interest annually.
Jennifer invested P450,000 for 4 years in this savings account. How
much interest will she gain?
13. In order to have P250,000 in 5 years, how much should you invest if the
compound interest is 12%?
14. How much money must be invested to obtain an amount of P150,000 in 2

years if money earns at 10.5% compounded annually?
15. What amount must be deposited by a student in a bank that pays 2 %
compounded annually so that after 12 years he will have P100,000?
For numbers 16 to 18: Nora is thinking of investing an amount of P30,000 for 2

years. Find the future value based on the following investments:
16. Simple interest of 8.5%
17. 8.5% compounded annually
18. Which investment is better? Justify your answer.
149
For numbers 19 & 20: Kaye aims to accumulate an amount of P180,000 in 5 years
and 6 months. Find the present value based on the following investments and tell
which investment requires a smaller principal.
19. Simple interest of 8.5%
20. 8.5% compounded annually
Lesson 26: Compounding More than Once a Year
PY
maturity value, interest, and present value, and solve problems involving compound
interest when compound interest is computed more than once a year
Lesson Outine:
C
O
1. Compounding more than once a year

2. Maturity value, interest, and present value when compound interest is computed
more than once a year
Sometimes, interest may be compounded more than once a year. Consider the
following example.
Example 1. Given a principal of PhP 10,000, which of the following options will yield
greater interest after 5 years:
EP
E
OPTION A: Earn an annual interest rate of 2% at the end of the year, or

OPTION B: Earn an annual interest rate of 2% in two portions1% after 6
months, and 1% after another 6 months?
Solution.
OPTION A: Interest is compounded annually
Time (t)
in years
Principal = PhP 10,000

Annual Int. rate = 2%, compounded annually
10,000 1.02 = 10,200
10,200 1.02 = 10,404
10,404 1.02 = 10,612.08
10,612.08 1.02 = 10,824.32
10,824.32 1.02 = 11,040.81
150
OPTION B: Interest is compounded semi-annually, or every 6 months.

Under this option, the interest rate every six months is 1% (2% divided by 2).
Time
(t) in
years
Principal = PhP 10,000

Annual Int. rate = 2%, compounded semi-annually
10,000 1.01 = 10,100
10,100 1.01 = 10,201
10,201 1.01 = 10,303.01

10,303.01 1.01 = 10,406.04
10,406.04 1.01 = 10,510.10
10,510.10 1.01 = 10,615.20
10,615.20 1.01 = 10,721.35
10,721.35 1.01 = 10,828.56
10,828.56 1.01 = 10,936.85
10,936.85 1.01 = 11,046.22
C
O
PY
EP
E
Answer: Option B will give the higher interest after 5 years.If all else is equal, a
more frequent compounding will result in a higher interest, which is why Option
B gives a higher interest than Option A.
The investment scheme in Option B introduces new concepts because interest is
compounded twice a year, the conversion period is 6 months, and the frequency
of conversion is 2. As the investment runs for 5 years, the total number of
conversion periods is 10. The nominal rate is 2% and the rate of interest for
each conversion period is 1%. These terms are defined generally below.
Definition of Terms:
Frequency of conversion (m) number of conversion periods in one year

Conversion or interest period time between successive conversions of interest
Total number of conversion periods n

n = mt = (frequency of conversion)(time in years)
Nominal rate (i(m)) annual rate of interest
Rate (j) of interest for each conversion period
=
151
Note on rate notation: r, i(m), j

In earlier lessons, r was used to denote the interest rate. Now that an interest rate
can refer to two rates (either nominal or rate per conversion period), the symbols i(m)
and j will be used instead.
Examples of nominal rates and the corresponding frequencies of conversion
and interest rate for each period:
i(m) = Nominal Rate
(Annual Interest Rate)
m = Frequency
of Conversions
2% compounded annually;
i(1) =0.02
2% compounded semiannually; i(2) = 0.02
2% compounded
quarterly;
i(3) = 0.02
2% compounded monthly;
i(12)= 0.02
= 0.02 = 2%
One
conversion
period
1 year
= 0.01 = 1%
6 months
= 0.005 = 0.5%
3 months
2% compounded daily;
i(365)= 0.02
365
PY
C
O
12
j = Interest Rate per

conversion period
= 0.001 =
1 month
1 day
EP
E
From Lesson 25, the formula for the maturity value F when principal P is invested at
an annual interest rate j compounded annually is F= P(1+j)t.
Because the rate for each conversion period is j =
, then in t years, interest is
compounded mt times. The following formula is obtained.
Maturity Value, Compounding m times a year
where

P = principal
i(m) = nominal rate of interest (annual rate)
m = frequency of conversion
152
Example 2. Find the maturity value and interest if P10,000 is deposited in a bank at
2% compounded quarterly for 5 years.
Given: P = 10,000
i(4) = 0.02
t = 5 years
m=4
Find: a. F
b. P
Solution.
Compute for the interest rate in a conversion period by
=
= 0.005.
PY
j=
Compute for the total number of conversion periods given by

n = mt = (4)(5) = 20 conversion periods.
F= P(1+j)n
= (10,000)(1 + 0.005)20
F= 11,048.96.
C
O
Compute for the maturity value using
The compound interest is given by
Ic = F P = 11,048.96 10,000 = P1,048.96.
EP
E
Example 3. Find the maturity value and interest if P10,000 is deposited in a bank at
2% compounded monthly for 5 years.
i(12) = 0.02
Given: P = 10,000
t = 5 years
m= 12
Find: a. F
b. P
Solution.
Compute for the interest rate in a conversion period by

j=
Compute for the total number of conversion periods given by

n = mt = (12)(5) = 60 conversion periods.
Compute for the maturity value using
F= P(1+j)n
= (10 000)
153
F = P11,050.79
.The compound interest is given by
Ic = F P =11,050.79 10,000 = P1,050.79.
Example 4. Cris borrows P50,000 and promises to pay the principal and interest at
12% compounded monthly. How much must he repay after 6 years?
Given: P = P50,000
i(12) = 0.12
t=6
m = 12
Find: F
PY
Solution.
F=
C
O
You may also use the other formula to compute for the maturity value
F = (50,000)(1.01)72
F = P102,354.97
Thus, Cris must pay P102,354.97 after 6 years.
EP
E
Present Value P at Compound Interest

P = principal
i(m) = nominal rate of interest (annual rate)
m = frequency of conversion
where
Example 5. Find the present value of P50,000 due in 4 years if money is invested at
12% compounded semi-annually.
Given: F = 50,000
i(2) = 0.12
t=4
Find: P
154
Solution.
First, compute for the interest rate per conversion period given by
j=
= 0.06.
The total number of conversion periods is n = tm = (4)(2) = 8.

The present value can be computed by substituting these values in the formula
P=
P=
PY
Thus,
= P31,370.62.
Example 6. What is the present value of P25,000 due in 2 years and 6 months if
money is worth 10% compounded quarterly?
t = 2 years
i(4) = 0.10
C
O
Given: F = 25,000
Find: P
Solution.
The interest rate per conversion period given by

=
j=
= 0.025,
and the total number of conversion periods is
EP
E
n = tm = (2 )(4) = 10.
The present value can be computed by substituting these values in the formula
P=
Thus,
P=
= P19,529.96.
Solved Examples
A. Debbie wants to compare the simple interest to compound interest on a P 60,000
investment.
1. Find the simple interest if funds earn 8% simple interest for 1 year.
2. Find the interest if funds earn 8% compounded annually for 1 year
3. Find the interest if funds earn 8% compounded semi-annually for 1 year.
4. Find the interest if funds earn 8% compounded quarterly for 1 year.
155
5. Which is the best investment? Why?

Given: P = 60,000
r = i(m) = 0.08 t = 1 year
1. Is = Prt = (60,000)(0.08)(1) = 4,800
2. F = P(1+r)t = (60,000)(1+0.08)1 = 64,800
Ic = F P = 64,800 60,000 = 4.800
3. F =
= 64,896
Ic = F P = 64,896 60,000 = 4.896

=
= 64,945.93
Ic = F P = 64,945.93 60,000 = 4.945.93
PY
4. F =
EP
E
C
O
5. The investment that yields the highest interest is the one that earns 8%
compounded quarterly.
B. James aims to accumulate 1 million pesos in 12 years. Which investment will
require the smallest present value?
6. 8% simple interest
7. 8% compounded annually
8. 8% compounded semi-annually
9. 8% compounded quarterly
10. 8% compounded monthly
Given: F = 1,000,000 t = 12 years r=i(m) = 0.08
6. P =
P=
= 510,204.08
7. P =
P=
P
10.
= 386,537.61
= 397,113.76
8. P
P
9. P
= 384,114.67
(smallest present value)

= 390,121.47
156

A. Complete the table by computing the interest rate per period and total number
of conversion periods.
Nominal Rate
Interest
Frequency of
Interest rate for each
i(m)
Compounded conversion (m)
conversion period
10%
Semi-annually
(1)
(2)
(3)
Quarterly
(4)
0.015
12%
Monthly
(5)
PY
B. Complete the table by computing for the maturity values, compound interests
and present values.
Nominal
(m)
Rate i
Interest
compounded
Interest
rate
per
period
Time
in
Years
Total
number of
conversions
20,000
6%
Semiannually
(6)
(7)
10%
quarterly
2.5%
(10)
C
O
Present
Value
(12)
Compound
Interest
(8)
Maturity
value
(9)
100,000
EP
E
C. Solve the following problems on compound interest.

13. Cian lends P45,000 for 3 years at 5% compounded semi-annually. Find the
future value and interest of this amount.
14. Tenten deposited P10,000 in bank which gives 1% compounded quarterly
and let it stay there for 5 years. Find the maturity value and interest.
15. How much should you set aside and invest in a fund earning 9%
compounded quarterly if you want to accumulate P200,000 in 3 years and 3
months?
16. How much should you deposit in a bank paying 2% compounded quarterly to
accumulate an amount of P80,000 in 5 years and 9 months?
17. Miko has P250,000 to invest at 6% compounded monthly. Find the maturity
value if he invests for (a) 2 years? (b) 12 years? (c) How much is the
additional interest earned due to the longer time.
18. Yohan sold his car and invested P300,000 at 8.5% compounded quarterly.
Find the maturity value if he invests for (a) 3 years? (b) 6 years? (c) How
much is the additional interest earned due to the longer time.
19. Maryam is planning to invest P150,000. Bank A is offering 7.5% compounded
semi-annually while Bank B is offering 7% compounded monthly. If she plans
to invest this amount for 5 years, in which bank should she invest?
20. Yani has a choice to make short term investments for her excess cash
P60,000. She can invest at 6% compounded quarterly for 6 months or (b) 5%
compounded semi-annually fo 1 year. Which is larger?
157
Lesson 27: Finding Interest Rate and Time in

Compound Interest
problems involving rate of interest and time in compound interest
Lesson Outline:
PY
1. Interest and time in compound interest

2. Equivalent interest rate
Finding the Number of Periods n, for Compounded Interest:
C
O
Using the formula for maturity value F, present value P, and interest rate j,
then
Thus,
Note that n must be an integer. Some rounding off may be necessary.
Example 1. How long will it take P3,000 pesos to accumulate to P3,500 in a bank
savings account at 0.25% compounded monthly?
F = 3,500
EP
E
Given: P = 3,000
m = 12
j=
i(12) = 0.25% = 0.0025
Find: n and t
Solution.
Substituting the given values in the maturity value formula

F = P(1+j)n
results to
3500 = 3000
=
To solve for n, take the logarithms of both sides.
=
158
=
n=
= 740.00
Thus, payments must be made for 740 months, or t =

Example 2.
= 61.67 years.
How long will it take P1,000 to earn P300 if the interest is 12%
compounded semi-annually?
i(2) = 0.12
m=2
j=
= 0.06
PY
Given: F = 1,300
Find: n and t
Solution.
C
O
F = P(1+j)n
1,300 = 1,000(1 + 0.06)n
1.3 = (1.06)n
log(1.3) = log(1.06)n
log(1.3) = n log(1.06)
4.503 periods.
n =
EP
E
Because interest is earned only at the end of the period, then 5 six-month periods
are needed so that the interest can reach P300.
Thus, n = 5, and t =
= 2.5 years
It will take 2.5 years for P1,000 to earn P300.
Finding the Interest Rate, j, per Conversion Period

Using the formula maturity value F, present value P, and interest rate j,
then
Thus,
Using
.
, then
159
Example 3. At what nominal rate compounded semi-annually will P10,000

accumulate to P15,000 in 10 years?
Given: F = 15,000
P = 10,000
t = 10
m = 2 n = mt = (2)(10) = 20
Find: i(2)
Solution.
F = P(1+j)n
15,000 = 10,000(1 + j)20
PY
= (1 + j)20
1.5 =(1 + j)20
(1.5)1/20 = 1 + j
C
O
(1.5)1/20 1 = j
j = 0.0205
The interest rate per conversion period is 2.05%.
The nominal rate (annual rate of interest) can be computed by
j=
EP
E
0.0205 =
i(2) = (0.0205)(2)
i(2) = 0.0410 or 4.10%
Hence, the nominal rate is 4.10%.
Example 4. At what interest rate compounded quarterly will money double itself in 10
years?
Given: F = 2P
t = 10 years
m=4
n = mt = (4)(10) = 40
Find: i(4)
Solution.
F = P(1+j)n
2P = P(1+j)n
2 = (1 + i)40
(2)1/40 = 1 + j
(2)1/40 1 = j
160
j = 0.0175
or 1.75%
The interest rate in each conversion period is 1.75%.

The nominal rate can be computed by
j=
0 .0175 =
i(4) = (0.0175)(4)
PY
i(4) = 0.070 or 7.00%

Therefore, the nominal rate that will double an amount of money compounded
quarterly in 10 years is 7.0%.
Definition of terms:
C
O
Equivalent rates two annual rates with different conversion periods that will earn
the same maturity value for the same time/term
Nominal rate annual interest rate (may be compounded more than once a year)
Effective rate rate when compounded annually will give the same compound each
year with the nominal rate; denoted by i(1)
Example 5. What effective rate is equivalent to 10% compounded quarterly?
EP
E
Given: i(4) = 0.10

m =4
Find: effective rate i(1)

Solution.
Since the equivalent rates yield the same maturity value, then
F1
F2
(1) t =
P(1+i )
i ( 4)
P1
m
mt
Dividing both sides by P results to

(1) t =
(1+i )
i ( 4)
1
mt
Raise both sides to 1/t to obtain
161
0.10
(1+i ) = 1
(i)
i(1) = 1.0254 1 = 0.103813 or 10.3813%

Hence, the effective rate equivalent to 10% compounded quarterly is 10.3813%.
PY
Number of Decimal Places

As you will see in Lesson 29, when solving for an equivalent rate j, it is important to
make it very precise. Thus ,when solving for an equivalent rate, say j = (1.025)4 1
in in Example 5, six or more decimal places will be used.
Example 6. Complete the table by computing for the rates equivalent to the following
nominal rates.Round off your answer to six decimal places.
Given Interest Rate
Equivalent Interest Rate

____
compounded annually
____
compounded quarterly
____
compounded semi-annually
C
O
12% compounded monthly

8 % compounded semi-annually
Solution.
EP
E
The maturity values accumulated by these interest rates at any time t (in particular,
at t = 1) must be equal. That is, F1 = F2 for any t, including when t = 1.
(1) Given: equal P; equal t

i(12) = 0.12
m = 12
___ compounded annually
i(1) = ?
m=1
Let F1 be the future value when interest is compounded annually, and F2 be the
future value when interest is 12% compounded monthly.
F1 = F2
P(1 +
(1 +
)(1)t = P(1 +
) = (1 +
)12t
)12
i(i) = (1.01)12 1
i(1) = 0.126825 = 12.6825%
Answer: 12.6825% compounded annually
162

8% compounded semi-annually
i(2) = 0.08
m=2
___ compounded quarterly
i(4) = ?
m=4
Let F1 be the future value when interest is compounded quarterly, and F2 be the
future value when interest is 8% compounded semi-annually.
F1 = F2
P(1 + )(4)t = P(1 +
)2
PY
)4 = (1 +
(1 +
)(2)t
= (1.04)2
= (1.04)1/2
= 1.019804
= 1.019804 - 1
C
O
= [(1.04)2](1/4)
EP
E
= 0.019804
i(12) = 0.12
m = 12
___ compounded semi-annually
i(2) = ?
m=2
i(4) = (0.019804)(4)
i(4) = 0.079216 or 7.9216%
Answer: 7.9216% compounded quarterly
Let F1 be the future value when interest is compounded semi-annually, and F2 be the
future value when interest is 12% compounded monthly.
F1 = F2
P(1 +
(1 +
)(2)t = P(1 +
)2 = (1 +
)(12)t
)12
163
= (1.01)12
= [ (1.01)12](1/2)
= (1.01)6
= 1.061520
`
= 1.061520 1
PY
= 0.061520
i(2) = (0.061520)(2)
i(2) = 0.12304 or 12.304%
12.304%
Solved Examples
compounded
C
O
Answer:
semi-annually
1. How long will a principal earn 50% of this amount at 6% compounded quarterly?
Find: t
F = P(1+j)n
i(4) = 0.06
j=
= 0.015
EP
E
Solution.
m=4
Given: Ic = 0.5P F = 1.5P
1.5P =P(1 + 0.015)n

1.5 = (1.015)
log(1.5) = log(1.015)n
log(1.5) = n log(1.015)
n =
Answer:
t=
= 27.23 periods
=
= 6.81 years
2. Ethan must pay P15,500 to pay an obligation of P12,000 at 6% compounded

monthly. When should this payment be given?
Given: P = 12,000
j=
F = 15,500
i(12) = 6% = 0.06
m = 12
= 0.005
Find: t
164
Solution.
F = P(1+j)n
15,500 = 12,000(1+0.005)n
log (
) = n log(1.005)
n=
Answer:
= 51.3145 periods
t=
= 4.28 years
Given: P = 20,000
F = 25,000
PY
3. Shirl is planning to invest P20,000. At what rate compounded semi-annually will

accumulate her money to P25,000 in 3 years?
t = 3 years
F = P(1+j)n
Solution.
n = mt = (2)(3) = 6
C
O
Find: i(2)
m=2
25,000 = (20,000)(1+j)n
1.25= (1 + j)6
(1.25)1/6 1 = j
(1.25)1/6 = 1 + j
or 3.79%%
EP
E
j = 0.0379
The interest rate in each conversion period is 3.79%.

The nominal rate can be computed by
j=
0.0379 =
Answer:
i(2) = (0.0370)(2)
(2)
= 0.0758 or 7.58%
4. What nominal rate compounded monthly is equivalent to 12% compounded

annually? Round off your answer to six decimal places.
Given: i(1) = 0.12
m =1
Find i(12)
Solution.
F1 =
F2
165
i (12)
P1
m
mt
= P(1+j)t
12t
i (12)
1
= (1+i(1))t
12
12
i (12)
1
= (1+0.12)
12
PY
i(12)
= 1.12(1 / 12) 1 = 0.009489
12
i(12) = 12(0.009489) = 0.113868 or 11.3868%
C
O
Answer: The nominal rate compounded monthly equivalent to 12% compounded

annually is 11.3868%.
5. What simple interest rate is equivalent to 10% compounded semi-annually at the
end of year 1?
Given: i(2) = 0.10
m =2
Find: r
t=1
Solution.
Compound Interest
EP
E
Simple Interest
Fs
P(1 + rst)
mt
D
i
1
2
i ( 2)
P1
m
(1 + rst)
( 2)
Fc
2t
Substitute t = 1 to obtain:
(1 + rs)
(1 + rs)
i ( 2)
1
0.10
1
166
(1.05)2
(1.05)2 - 1
0.1025 or 10.2
(1 + rs)
rs
Answer:
rs
quarterly
(1)
6%
semi-annually
12%
monthly
10%
C
O
PY
A. Complete the table by computing for unknown values. In numbers 3, 6, and 9,

round off your answer to six decimal places.
Nominal Interest
Frequency
Interest Equivalent
Rate
per
Rate
compounded of
Rate per Nominal Rate period,
Conversion
Period
based on
Periods
rate
and
period from
previous
column
EP
E
12
(2)
___(3)_
compounded
semi-annually
(4)
(5)
__(6)___
compounded
monthly
(7)
(8)
__(9)___
compounded
quarterly
(10)
Semiannually
(16)
(17)
(18)
(19)
Maturity
value
11%
(14)
Compound
Interest
75,000
Number of
conversions
Interest rate
per period
quarterly
Time in
Years
Frequency of
Conversions
(11)
(13)
Nominal
Rate
8,000
(12)
Principal
Interest
compounded
B. Complete the table by finding the unknown time and rate.
(15)
8,800
10,000
(20)
167
C. Solve the following problems:

21. Jun invested an amount of P 100,000 where he obtained an interest of
16,000at the end of 2 years. At what nominal rate compounded semiannually was it invested?
22. Jen invested an amount of P 400,000 at 5% compounded quarterly. How long
should she let the investment stay if she wants to earn P 50,000?
23. Mr. Retanan was given a loan at 10% compounded monthly. When should he
pay it so that it will just earn only 10% of the amount borrowed?
PY
24. At what interest rate compounded quarterly should an amount be invested if

the interest earned is 20% of the invested amount for 5 years?
C
O
25. What simple interest rate is equivalent to 1% compounded quarterly?
Lesson 28: Simple Annuity
Lesson Outline:
Definition of Terms
Time Diagrams
Future Value of a Simple Annuity
Present Value of a Simple Annuity
Periodic Payment of a Simple Annuity
EP
E
1.
2.
3.
4.
5.
simple and general annuities, distinguish between simple and general annuities, find
the future and present values of simple annuities, computes the periodic payment of
a simple annuity
Definition of Terms:
ANNUITY a sequence of payments made at equal(fixed) intervals or periods of time

Annuities may be classified in different ways, as follows.
168
Annuities
General Annuity - an
annuity where the
payment interval is not the
same as the interest
period
According to time of
payment
Ordinary Annuity (or

Annuity Immediate) a
type of annuity in which
the payments are made at
the end of each payment
interval
Annuity Due a type of

annuity in which the
payments are made at
beginning of each
payment interval
According to duration
Annuity Certain an
annuity in which payments
begin and end at definite
times
C
O
PY
According to payment
interval and interest period
Simple Annuity- an
annuity where the
payment interval is the
same as the interest
period
Contingent Annuity an
annuity in which the
payments extend over an
indefinite (or
indeterminate) length of
time
EP
E
Note: Grade 11 will focus on Ordinary Annuities (not Annuity Due), and on Annuity
Certain (not Contingent Annuities). Simple Annuities are discussed in this lesson,
and General Annuities are discussed on Lesson 29.
Term of an annuity, t time between the first payment interval and last payment
interval
Regular or Periodic payment, R the amount of each payment

Amount (Future Value) of an annuity, F sum of future values of all the payments
to be made during the entire term of the annuity
Present value of an annuity, P sum of present values of all the payments to be
made during the entire term of the annuity
Annuities may be illustrated using a time diagram. The time diagram for an ordinary
annuity (i.e., payments are made at the end of the year) is given below.
169
Time Diagram for an n-PaymentOrdinary Annuity

R R
R R
R
R
0
Example 1. Suppose Mrs. Remoto would like to save P3,000 every month in a fund
that gives 9% compounded monthly. How much is the amount or future value of her
savings after 6 months?
PY
Given: periodic payment R = P3,000

term t = 6 months
interest rate per annum i(12) = 0.09
C
O
number of conversions per year m = 12
0.09
= 0.0075
12
interest rate per period j =
Find: amount (future value) at the end of the term, F
Solution.
Illustrate the cash flow in a time diagram.
EP
E
(1)
3000
(2)
3000
3000
3000
3000
1
2
3
4
5
6
Find the future value of all the payments at the end of term (t = 6).
3000
3000
3000
3000
3000
3000
3000
3000
3000(1 + 0.0075)
3000(1 + 0.0075)2
3000(1 + 0.0075)3
3000(1 + 0.0075)4
3000(1 + 0.0075)5
170
3000
Add all the future values obtained from the previous step.
= 3000
3000(1 + 0.0075)
= 3022.5
3000(1 + 0.0075)2
= 3045.169
3000(1 + 0.0075)3
= 3068.008
3000(1 + 0.0075)4
= 3091.018
3000(1 + 0.0075)5
= 3114.20
__________________
F =18340.89
C
O
Thus, the amount of this annuity is P18,340.89.
PY
(3)
Amount (Future Value) of an Ordinary Annuity:

The derivation of the formula in finding the amount of an ordinary annuity is similar to
the solution of Example 1.
Illustrate the cash flow in a time diagram.
EP
E
..
n-1
R
R(1 + j)
....
R(1 + j)n-2
R(1 + j)n-1
F = R + R(1 + j)+ R(1 + j)2 + .+ R(1 + j)n-2 + R(1 + j)n-1
(1)
Multiply both sides by (1 + j) to get

F(1+j) = R(1+j)+ R(1 + j)2 + R(1+j)3++ R(1+j)n-1 + R(1+j)n
(2)
From Equation (1), subtract Equation (2) to produce

171
F(1+j) F = R(1+j)n - R
F[(1+j) - 1] = R[(1+j)n 1]
F(j) = R [(1+j)n-1]
(1 j)n 1
F R
j
(1 j)n 1
is usually denoted by the symbol sn read as
j
s angle n.
Alternate Solution to Example 1:
Amount (Future Value) of ordinary annuity:
PY
The expression
C
O
The future value F of an ordinary annuity is given by
(1 j)n 1
F R
j
R is the regular payment;
j is the interest rate per period;
n is the number of payments
where
EP
E
(1 j)n 1
j
F R
F (3000)
(1 0.0075)6 1
0.0075
F = 18,340.89.
Example 2. In order to save for her high school graduation, Marie decided to save
P200 at the end of each month. If the bank pays 0.250% compounded monthly, how
much will her money be at the end of 6 years?
Given: R = 200
m = 12
i(12) = 0.250% = 0.0025
j=
0.0025
= 0.000208
12
t = 6 years
172
n = tm = (6)(12)= 72 periods
Find: F
Solution.
(1 j)n 1
F R
j
_
F (200)
(1 0.000208 3)72 1
_
PY
0.000208 3
F = 14,507.85
Hence, Marie will be able to save P14,507.85 for her graduation
C
O
Example 3: (Recall the problem in Example 1.) Suppose Mrs. Remoto would like to
know the present value of her monthly deposit of P3,000 when interest is 9%
compounded monthly. How much is the present value of her savings at the end of 6
months?
Given: periodic payment R = 3,000
term t = 6 months
EP
E
interest rate per annum i(12) = 0.09

number of conversions per year m = 12
interest rate per period j =
0.09
= 0.0075
12
Find: Present value P
Discount the payment of each period to the beginning of the term. That is,
find the present value of each payment. Recall the formula
(1)
173
3000
3000
3000
3000
3000
3000
3000(1.0075)1
3000(1.0075)2
3000(1.0075)3
PY
3000(1.0075)4
3000(1.0075)5
Add the discounted payments to get the present value.

3000(1.0075)1
=2977.667
3000(1.0075)2
= 2955.501
3000(1.0075)3
= 2933.50
3000(1.0075)4
= 2911.663
3000(1.0075)5
(2)
C
O
3000(1.0075)6
= 2889.988
EP
E
3000(1.0075)6
= 2868.474
_______________________________________________________
P =17536.79
Thus, the cost of the TV set at the beginning of the term is P17,536.79.
Since we already know from Example 1 that the accumulated amount at the end of 6
months is P18,340.89, then we can simply get the present value of this amount using
the formula
.
Present Value of an Ordinary Annuity:
The derivation of the formula in finding the amount of an ordinary annuity is similar to
the solution of Example 3.
*** Discount or get the value of each payment at the beginning of the term and then
add to get the present value of an ordinary annuity. Use the formula
174
..
n-1
R(1 + j)1
PY
R(1 + j)2
R(1 + j)(n-1)
C
O
R(1 + j)n
to get
EP
E
Multiply both sides by
(1)
(2)
From Equation (1), subtract Equation (2) to produce
175
The expression
1 (1 j)n
is usually denoted by the symbol a n
j
read as a angle n.
Hence, the present value P of an ordinary annuity can be written as
P R an
1 (1 j)n
.
j
Alternative Derivation
C
O
(1 j ) n 1
FR
j
PY
The future value of an ordinary annuity was given earlier by
Present Value of an Ordinary Annuity
The present value of an ordinary annuity is given by
P R
1 (1 j)n
j
EP
E
where R is the regular payment;

To get the present value of this amount, we use the formula P
(1 j ) n
F
and obtain
(1 j ) n
(1 j ) n 1
(1 j ) n 1
1 (1 j ) n
j
n
R
(1 j ) R
.
(1 j ) n
j
j
P R
1 (1 j)n
j
1 (1 0.0075) 6
0.0075
P =17,536.79.
P (3000)
176
The cash value or cash price of a purchase is equal to the down payment (if
there is any) plus the present value of the installment payments.
Example 4. Mr. Ribaya paid P200,000 as down payment for a car. The remaining
amount is to be settled by paying P16,200 at the end of each month for 5 years. If
interest is 10.5% compounded monthly, what is the cash price of his car?
down payment = 200,000
R = 16,200
i(12) = 0.105
m = 12
j=
0.105
= 0.00875
12
PY
Given:
Solution.
C
O
t = 5 years
n = mt = (12)(5) = 60 periods
Find: cash value or cash price of the car
The time diagram for the installment payments is given by:

P=?
16200
16200
16200
60
EP
E
16200
The present value of this ordinary annuity is given by
P R
1 (1 j)n
j
1 (1 0.00875) 60
0.00875
P = 753,702.20
P (16200)
Cash value = Down payment + present value

= 200,000 + 753,702.20
Cash Value = P953,702.20
The cash price of the car is P953,702.20
177
Periodic payment R of an Annuity:
C
O

P is the present value of an annuity
F is the future value of an annuity
PY
Periodic payment R can also be solved using the formula for amount F
or present value P of an annuity.
Example 5. Paolo borrowed P 100 000. He agrees to pay the principal plus interest
by paying an equal amount of money each year for 3 years. What should be his
annual payment if interest is 8% compounded annually?
Given: P = 100 000
EP
E
i(1) = 0.08
m=1
j = 0.08
t = 3 years
n = mt = (1)(3) = 3 periods
Find: periodic payment R
Solution.The cash flow of this annuity is illustrated in the time diagram given below.
P=100000
R=?
0
Since P R
R=?
R=?
1 (1 j)n
then
j
178
1 (1 j)n
]
j
R P/ [
1 (1 0.08)3
]
0.08
R = 100000 / [
R = 38,803.35
Thus, the man should pay P38,803.35 every year for 3 years.
Solved Examples
PY
1. Aling Paring started to deposit P2,000 quarterly in a fund that pays 5.5%
Given: R = 2,000
m=4
i(12) = 5.5% = 0.055
C
O
compounded quarterly. How much will be in the fund after 6 years?
0.055
= 0.01375
4
t = 6 years
n = tm = (6)(4)= 24 periods
Find: F
(1 j)n 1
j
EP
E
Solution. F R
j=
F (2,000)
(1 0.01375)24 1
0.01375
Answer: F = 56,413.75
2. The buyer of a house and lot pays P200,000 cash and P10,000 every month for
20 years. If money is 9% compounded monthly, how much is the cash value of
the lot?
Given: down payment = 200,000
R = 10,000
i(12) = 0.09
m = 12
0.09
= 0.0075
12
t = 20 years
n = mt = (12)(20) = 240 periods
j=
179
Find: Cash value

Solution.
P R
1 (1 j)n
j
P (10,000)
1 (1 0.0075)240
0.0075
P = 1,111,449.54
Cash Value = Down payment + Present Value
PY
Cash Value = 200,000 + 1,111,449.54

Answer: Cash Value = 1,311,449.54
3. Grace borrowed P150,000 payable in 2 years. To repay the loan, she must pay
EP
E
Solution.
C
O
an amount every month with an interest rate of 6% compounded monthly. How

much should he pay every month?
Given:
P = 150 000
i(1) = 0.06
m = 12
j = 0.005
t = 2 years
n = mt = (12)(2) = 24 periods
1 (1 j)n
]
R P/ [
j
R = 150000 /
1 (1 0.005)24
[
]
0.005
Answer: R = 6,6408.09
4. Mr. Ribaya would like to save P500,000 for his sons college education. How
much should he deposit in a savings account every 6 months for 12 years if
interest is at 1% compounded semi-annually?
Given:
F = 500,000
i(2) = 0.01
m=2
j = 0.005
t = 12 years
n = mt = (2)(12) = 24 periods
180
Solution.
R F /
(1 j)n 1
j
(1 0.005) 24 1
R 500,000 /
0.005
Answer: R = P19,660.31
5. A refrigerator is for sale at P17,999 in cash or on terms, P1,600 each month for
Solution.
Find: Present Value P
C
O
Cash Price: P 17,999

R = 1,600
i(12) = 0.09
m = 12
j = 0.0075
t = 1 year
n = mt = (12)(1) = 12 periods
PY
the next 12 months. Money is 9% compounded monthly. Which is lower, the cash
price or the present value of the installment terms?
Given:
EP
E
P R
1 (1 j)n
j
P (1,600)
1 (1 0.0075)12
0.0075
P = 18,295.86
Therefore, buying the refrigerator in cash is lower than paying it in installment

term.
181
PY
A. Find the future value F of the following ordinary annuities.

1. Monthly payments of P3,000 for 4 years with interest rate of 3%
compounded monthly
2. Quarterly payment of P5,000 for 10 years with interest rate of 2%
3. Semi-annual payments of P12, 500 with interest rate of 10.5%
compounded semi-annually for 6 years
4. Annual payments of P105,000 with interest rate of 12% compounded
annually for 5 years
5. Daily payments of P20 for 30 days with interest rate of 20%
compounded daily for 1 month
EP
E
C
O
B. Find the present value P of the following ordinary annuities.

6. Monthly payments of P2,000 for 5 years with interest rate of 12%
compounded monthly
7. Quarterly payment of P15,000 for 10 years with interest rate of 8%
8. Semi-annual payments of P20,500 with interest rate of 8.5%
compounded semi-annually for 3 years
9. Annual payments of P150,000 with interest rate of 8% compounded
annually for 10 years
10. Daily payments of P54 for 30 days with interest rate of 15%
compounded daily for one month
C. Find the periodic payments of the following ordinary annuities.

11. Monthly payment of the future value of P50,000 for 1 year with an
interest rate of 10% compounded monthly
12. Quarterly payment of an accumulated amount of P80,000 for 2 years
with interest rate of 8% compounded quarterly
13. Payment every six months for the present value of P100,000 for 2
years with an interest rate of 12% compounded semi-annually
14. Annual payment of the loan P800,000 for 5 years with an interest rate
of 9% compounded annually
15. Monthly installment of an appliance cash prize of P20,000 for 6
months with an interest rate of 6% compounded monthly
D. Solve the following problems.

16. How much is the monthly amortization on an automobile loan of
P900,000 to be amortized over a 5-year period at a rate 9.5%
compounded monthly?
182
17. Shirl started to deposit P18,000 semi-annually in a fund that pays 5%

compounded semi-annually. How much will be in the fund after 10
years?
18. Kathrina wants to buy a lot which costs 1 million pesos. She plans to
give a down payment of 20% of the cost, and the rest will be paid by
financing at annual interest rate of 12% for 10 years in equal monthly
installments? What will be the monthly payment?
C
O
PY
19. Ken is paying P2,500 every 3 months for the amount he borrowed at
an interest rate of 8% compounded quarterly. How much did he
borrow if he agreed that the loan will be paid in 2 years and 6
months?
20. A store advertises a motorcycle for P3,000 downpayment and P3,000
per month for 15 months. If the interest is 15% compounded monthly,
what
is
the
actual
value
of
the
motorcycle?
Lesson 29: General Annuity
EP
E
Learning Outcome(s): At the end of the lesson, the learner is able to find the future
and present values of general annuities and compute the periodic payment of a
general annuity, and calculate the fair market value of a cash flow stream that
includes an annuity.
Lesson Outline:
1. Future Value of a General Annuity

2. Present Value of a General Annuity
3. Fair Market Value of a Cash Flow Stream that Includes and Annuity
Recall these terms defined in Lesson 28.
General Annuityan annuity where the length of the payment interval is not the
same as the length of the interest compounding period
General Ordinary Annuity a general annuity in which the periodic payment is
made at the end of the payment interval
Examples of General annuity:

1. Monthly installment payment of a car, lot, or house with an interest rate that
is compounded annually
2. Paying a debt semi-annually when the interest is compounded monthly
183
Future and Present Value of a General Ordinary Annuity

The future value F and present value P of a general ordinary annuity is
given by
(1 j)n 1
1 (1 j)n
F R
and P R
PY

j is the equivalent interest rate per payment interval
converted from the interest rate per period; and
n is the number of payments.
C
O
The formulas for F and P are same as those in Lesson 28. The extra step occurs in
finding j: the given interest rate per period must be converted to an equivalent rate
per payment interval.
Example 1. Cris started to deposit P1,000 monthly in a fund that pays 6%
compounded quarterly. How much will be in the fund after 15 years?
Given: R = 1,000
n = 12(15) = 180 payments
Find: F
i(4) = 0.06m = 4
Solution:
EP
E
The cash flow for this problem is shown in the diagram below.
(1)
1000
1000
1000
3
1000
F
1000
..
179
180
Convert 6% compounded quarterly to its equivalent interest rate for monthly

payment interval.
F1 = F2
P(1 +
)(12)t = P(1 + )(4)t
(1 +
)12 = (1 +
(1 +
)12 = (1.015)4
)4
= [(1.015)4](1/12)
184
= (1.015)1/3 1
= 0.00497521 = j
Thus, the interest rate per monthly payment interval is 0.00497521 or 0.497521%.
Apply the formula in finding the future value of an ordinary annuity using the
computed equivalent rate
n
(1 j) 1
j
F R
F 1000
(1 0.00497521)180 1
0.00497521
PY
(2)
F = 290,082.51
C
O
Thus, Cris will have P290,082.51 in the fund after 20 years.
Number of Decimal Places

When solving for an equivalent rate, say j = (1.015)1/3 1 in Example 1, six or
more decimal places will be used. If you use fewer or more decimal places, your
answers may differ from the answers provided in the text. You can ignore these
discrepancies, but it is suggested that you use at least six decimal places, or the
exact value.
EP
E
Example 2. A teacher saves P5,000 every 6 months in a bank that pays 0.25%
compounded monthly. How much will be her savings after 10 years?
Given: R = 5000
n = 2(10) = 20 payments
i(12) = 0.25% = 0.0025
m = 12
Find: F
Solution.
5000
5000
5000
5000
5000
19
20
185
(1)
Convert 0.25% compounded monthly to its equivalent interest rate for each
semi-annual payment interval.
F1 = F2
)(12)t
(1 +
)2 = (1 +
)12
(1 +
)2 = (1.00020833)12
PY
P(1 + )(2)t = P(1 +
= [ (1.00020833)12](1/2)
= (1.00020833)6 1
C
O
= 0.00125063 = j
Thus, the interest rate per semi-annual payment interval is 0.00125063 or 0.125%.
Apply the formula in finding the future value of an ordinary annuity using the
computed equivalent rate
n
F R
(1 j) 1
j
(2)
EP
E
(1 0.00125063) 20 1
F 5000
0.00125063
F = 101,197.06
Thus, the teacher will be able to save P101,197.06 after 10 years.
Example 3. Ken borrowed an amount of money from Kat. He agrees to pay the
principal plus interest by paying P38,973.76 each year for 3 years. How much money
did he borrow if interest is 8% compounded quarterly?
Given: R = 38,973.76
i(4) = 0.08
m=4
n = 3 payments
Find: present value P
186
Solution.
P=?
R=38973.76
R=38973.76
R = 38973.76
0
(1)
Convert 8% compounded quarterly to its equivalent interest rate for each

payment interval.
)(1)t = P(1 +
)4t
)4
(1 +
) = (1 +
(1 +
) = (1 +0.02)4
= (1.02)4 1
= j = 0.082432 = 8.24%
C
O
P(1 +
PY
F1 = F2
Thus, the interest rate per payment interval is 0.082432 or 8.24%.

Apply the formula in finding the present value of an ordinary annuity using
the computed equivalent rate j = 0.082432.
EP
E
(2)
P R
1 (1 j)n
j
1 (1 0.082432) 3
P 38973.76
0.082432
P = 100,000.00
Hence, Ken borrowed P100,000 from Kat.
Example 4. Mrs. Remoto would like to buy a television (TV) set payable for 6 months
starting at the end of the month. How much is the cost of the TV set if her monthly
payment is P3,000 and interest is 9% compounded semi-annually?
Given: R = 3,000
i(2) = 0.09
m=2
n = 6 payments
187
Find: cost (present value) at the beginning of the term P

Solution:
F1 = F2
)(12)t = P(1 +
P(1 +
)(2)t
(1 +
)12 = (1 +
)2
(1 +
)12 = (1+0.045)2
PY
= [ (1.045)2](1/12) ]
= (1.045)1/6 1
C
O
= 0.00736312 = j
Thus, the interest rate per monthly payment interval is 0.00736312 or

0.736312%.
1 (1 j)n
j
EP
E
P R
(2) Apply the formula in finding the present value of an ordinary annuity using the
computed equivalent rate j = 0.00736312.
P 3000
1 (1 0.00736312)6
0.00736312
P = 17,545.08
Thus, the cost of the TV set is P17,545.08.
A cash flow is a term that refers to payments received (cash inflows) or

payments or deposits made (cash outflows). Cash inflows can be
represented by positive numbers and cash outflows can be represented by
negative numbers.
The fair market value or economic value of a cash flow (payment stream)
on a particular date refers to a single amount that is equivalent to the value
of the payment stream at that date. This particular date is called the focal
date.
188
Example 5. Mr. Ribaya received two offers on a lot that he wants to sell. Mr.
Ocampo has offered P50,000 and a P1 million lump sum payment 5 years from now.
Mr. Cruz has offered P50,000 plus P40,000 every quarter for five years. Compare
the
fair
market values of the two offers if money can earn 5% compounded annually. Which
offer has a higher market value?
Given:
Mr. Cruzs offer
P50,000 down payment
P50,000 down payment
P1,000,000 after 5 years
P40,000 every quarter
PY
Mr. Ocampos offer
for 5 years
C
O
Find: fair market value of each offer

Solution.
We illustrate the cash flows of the two offers using time diagrams.
50,000
40,000
40,000
EP
E
Mr. Ocampos offer:
1 million
Mr. Cruzs offer:
50,000
40,000
40,000
0
1
2
3
20
Choose a focal date and determine the values of the two offers at that focal date. For
example, the focal date can be the date at the start of the term.
Since the focal date is at t = 0, compute for the present value of each offer.
Mr. Ocampos offer: Since P50,000 is offered today, then its present value is still
PhP 50 000.The present value of P1,000,000 offered 5 years from now is
P = F(1 + j)-n
P = 1,000,000 (1+0.05)-5
P = P783,526.20
189
Fair Market Value (FMV) = Down payment + Present Value

= 50,000 + 783,526.20
FMV = P833,526.20
Mr. Cruzs offer: We first compute for the present value of a general annuity with
quarterly payments but with annual compounding at 5%.
Solve the equivalent rate, compounded quarterly, of 5% compounded annually.
F1 = F2
(1 +
)20 = (1 +
1+
= (1.05)(1/4)
)(1)(5)
PY
)(4)(5) = P(1 +
)5
= (1.05)(1/4)- 1
C
O
P(1 +
0.012272
The present value of an annuity is given by
1 (1 j)n
j
1 (1 0.012272)20
0.012272
EP
E
P 40000
P R
P = P705,572.70
Fair Market Value = Downpayment + present value

= 50,000 + 705,572.70
Fair Market Value = P755,572.70
Hence, Mr. Ocampos offer has a higher market value. The difference between the
market values of the two offers at the start of the term is
833 526.20 - 755 572.70 = P77,953.50
Alternate Solution (Focal date at the end of the term):
Mr. Ocampos offer:
The future value of P1,000,000 at the end of the term at 5% compounded
annually is given by
F = P(1 + j)n
190
F = 50,000(1+0.05)5
F = 63,814.08
The fair market value of this offer at the end of the term is 63,814.08 plus 1
million pesos amounting to P,1,063 814.08.
Mr. Cruzs offer:
The future value of this ordinary general annuity is given by:
(1 j)n 1
j
F 40000
(1 0.012272)20 1
0.012272
PY
F R
F = 900,509.40
C
O
The future of P50,000 at the end of the term is P63,814.08, which was already
determined earlier.
Fair Market Value = 900,509.40 + 63,814.08 = P964,323.48
As expected, Mr. Ocampos offer still has a higher market value, even if the focal
date was chosen to be at the end of the term. The difference between the market
values of the two offers at the end of the term is
1,063,814.08 964,323.48 = P99,490.60.
EP
E
You can also check that the present value of the difference is the same as the
difference computed when the focal date was the start of the term:
P = 99,490.60(1 + 0.05)-5 = P77,953.49.
Example 6. Which offer has a better market value?
Company A offers P150,000 at the end of 3 years plus P300,000 at the end of 5
years. Company B offers P25,000 at the end of each quarter for the next 5 years.
Assume that money is worth 8% compounded annually.
Given:
Company A
Company B
P150,000 at the end of 3 years

P300,000 at the end of 5 years
P25,000 at the end of each quarter for

the next 5 years
Find: fair market value of each offer
191
Solution.
(1)
Illustrate the cash flows of the two offers using time diagrams.
Company A offer:
150,000
300,000
PY
Company B offer:
25,000
25,000
25,000
20
C
O
25,000
Suppose that selected focal date is the start of the term. Since the focal date is the
start of the term, compute for the present value of each offer.
Company A offer:
The present value of P150,000 three years from now is
EP
E
P1 = F(1 + j)-n
P1 = 150000(1+0.04)-6
P1 = P118,547.18
The present value of P300,000 five years from now is
P2 = F(1 + j)-n
P2 = 300000(1+0.04)-10
P2 = P202,669.25
Fair Market Value(FMV) = P1 + P2

= 118547.18 + 202669.25
FMV = P321,216.43
Company B offer: Compute for the present value of a general annuity with
quarterly payments but with semi-annual compounding at
8%.
Solve the equivalent rate, compounded quarterly, of 8% compounded semiannually.
F1 = F2
P(1 +
)(4)(5) = P(1 +
)(2)(5)
192
)20 = (1 +
(1 +
)10
= (1.04)(1/2)
1+
= (1.04)(1/2)- 1
0.019803903
The present value of an annuity is given by
P 25000
PY
1 (1 j)n
j
1 (1 0.019803903)20
0.019803903
P = P409,560.4726
C
O
P R
Therefore, Company B offer is preferable since its market value is larger.
Solved Problems
1. ABC Bank pays interest at the rate of 2% compounded quarterly. How much will
Ken have in the bank at the end of 5 years if he deposits P3,000 every month?
EP
E
Given: R = 3,000
n = mt = (12)(5) = 60 payments
i(4) = 0.02
Find: F
Solution.
Convert 2% compounded quarterly to its equivalent interest rate for monthly

payment interval.
(1 +
)(12)= (1 +
)(4)
(1 +
)12 = (1 +
)4
(1 +
)12 = (1.005)4
= [(1.005)4](1/12)
= (1.005)1/3 1= 0.001664 = j
193
Find the future value of an ordinary annuity using the computed equivalent rate
F R
(1 j)n 1
j
F 3,000
(1 0.001664)60 1
0.001664
Answer: F = P189,126.38
PY
2. A sala set is for sale at P16,000 in cash or on monthly installment of P2,950 for 6
months at 12% compounded semi-annually. Which is lower: the cash price or the
present value of the installment term?
C
O
Given: Cash price: P 16,000

R = 2,950
i(2) = 0.12
m = 12
n = (12)(0.5) = 6 monthly installment payments
Find: present value P
Solution.
)(12) = P(1 +
(1 +
)(12)= (1 +
)2
EP
E
(1 +
Convert 12% compounded semi-annually to its equivalent interest rate for each
monthly payment interval.
)2
= (1.06)2(1/12) 1
= (1.06)1/6 1
= j = 0.009758
Find the present value of an ordinary annuity using the equivalent rate j = 0.0009758.
P R
1 (1 j)n
j
P (2,950)
1 (1 0.009758)6
0.009758
Answer: P = P17,110.88
194
The cash price is lower than the present value of the installment terms.
PY
3. To accumulate a fund of P500,000 in 3 years, how much should Aling Paring

deposit in her account every 3 months if it pays an interest of 5.5% compounded
annually.
Given: F = 500,000
i(1) = 0.055
m=4
n =(4)(3) = 12 deposits
Find: quarterly deposit R
Solution.
Convert 5.5% compounded annually to its equivalent interest rate for quarterly
deposit.
)4 = (1 +
)(1)
(1 +
)4 = (1 +0.055)
= (1.055)1/4 1
= j = 0.013475
C
O
(1 +
Find the periodic deposit R of an ordinary annuity using the equivalent rate
EP
E
j = 0.013475.
(1 j)n 1
R F /
j
R 500,000 /
(1 0.013475)12 1
0.013475
Answer: R = P38,668.16
4. Nadine is the beneficiary of P1,000,000 insurance policy. Instead of taking the

money as lump sum, she opted to receive a monthly stipend over a period of 10
years. If the insurance policy pays an interest of 5% compounded annually, what
will be her monthly stipend?
Given:
p = 1,000,000
i(1) = 0.05
m=1
n = (10)(12) = 120 monthly stipends
Find: quarterly deposit R
195
Solution.
Convert 5% compounded annually to its equivalent interest rate for monthly interval.
(1 +
)12 = (1 +
)(1)
(1 +
)12 = (1 +0.05)
= (1.05)1/12 1
PY
= j = 0.004074
Find the monthly stipend R of an ordinary annuity using the equivalent rate
j = 0.004074.
1 (1 j)n
j
PR (1,000,000)/
C
O
R P/
1 (1 0.004074)120
0.004074
Answer: R = P10,552.28
EP
E
5. Kat received two offers for investment. The first one is 150,000 every year for 5
years at 9% compounded annually. The other investment scheme is 12,000 per
per month for 5 years with the same interest rate. Which fair market value
between these offers is preferable?
Solution: Let the focal point be the end of the term, and so, compute for the
future value.
First Offer (Ordinary Annuity)

Given: R = 150,000 i(1) = 0.09 m = 1
F R
t = 5 n = 5 payments
(1 j)n 1
j
F 150,000
(1 0.09)5 1
0.09
Answer: F = 897,706.59
Second Offer: (General Annuity)
196
Given: R = 12,000
payments
i(1) = 0.09
m=1 n
(5)(12)
60
monthly
Convert 9% compounded annually to its equivalent interest rate for monthly

payment interval.
(1 +
)(12) = P(1 +
(1 +
)(12)= (1 +0.09)
)1
PY
= (1.09)(1/12) 1
= j = 0.00721
Find the future value of this investment.
C
O
(1 j)n 1
F R
j
(1 0.00721)60 1
F 12,000
0.00721
Answer: F = 896,869.86
The two offers are almost similar but the first offer is preferable.
EP
E
A. Find the future value F of the following general annuities.

1. Monthly payments of 3,000 for 4 years with interest rate of 3%
2. Quarterly payment of 5,000 for 10 years with interest rate of 2%
compounded annually
3. Annual payments of P12, 500 with interest rate of 10.5% compounded
semi-annually for 6 years
4. Semi-annual payments of P 105,000 with interest rate of 12%
compounded annually for 5 years
5. Daily payments of P 20 for 30 days with interest rate of 20%
compounded annually
B. Find the present value P of the following general annuities.
6. Monthly payments of 2,000 for 5 years with interest rate of 12%
7. Quarterly payment of 15,000 for 10 years with interest rate of 8%
compounded annually
197
8. Annual payments of P20,500 with interest rate of 8.5% compounded

semi-annually for 3 years
9. Semi-annual payments of P 150,000 with interest rate of 8%
compounded annually for 10 years
10. Daily payments of P 54 for 30 days with interest rate of 15%
compounded annually
C
O
PY
C. Find the periodic payments of the following general annuities

11. Monthly
payment
of
the
future
value
of
P50,000
for 1 year with an interest rate of 10% compounded quarterly
12. Quarterly payment of an accumulated amount of P80,000 for
2 years with interest rate of 8% compounded annually
13. Annual payment for the present value of P100,000 for 2 years with an
interest rate of 12% compounded semi-annually
14. Semi-annual payment of the loan P800,000 for 5 years with an
interest rate of 9% compounded annually.
15. Monthly installment of an appliance cash prize of P20,000 for 6
months with an interest rate of 6% compounded semi-annually
EP
E
D. Answer the following problems.

16. Teacher Kaye is saving P2,000 every month by depositing it in a bank
that gives an interest of 1% compounded quarterly. How much will
she save in 5 years?
17. Vladimir purchased a new car for P99,000 downpayment and P15,000
every month. If the payments are based on 7% compounded quarterly
what is the total cash price of his car?
18. In order to have a fund of 1,000,000 at the end of 12 years, equal
deposits every six months must be made. Find the semi-annual
payment if interest is at 6% compounded annually.
19. Which investment is preferable? (Hint: Compute for the market
values)
Investment in Sunrise company 100,000 at the end of 5 years plus P
24,000 annually for 4 years afterwards. Investment in XYZ company B
offers P 50,000 semi-annually 15,000 every 6 months after 6 years .
Assume that money is worth 9% compounded annually.
20. A motorcycle is for sale P 60,500 cash or on installment terms 3,000
per month for 2 years at 12% compounded annually. If you were the
buyer, what would you prefer, cash or installment?
198
Lesson 30: Deferred Annuity

Learning Outcome(s): At the end of the lesson, the learner is able to calculate the
present value and period of deferral of a deferred annuity
Lesson Outline:
1. Deferred Annuity
2. Present Value of a Deferred Annuity
3. Period of Deferral of a Deferred Annuity
PY
Definition of Terms
Deferred Annuity an annuity that does not begin until a given time interval has
passed
C
O
Period of Deferral time between the purchase of an annuity and the start of the
payments for the deferred annuity
Time Diagram for a Deferred Annuity
R*
R*
k+1
k+2
k+n
EP
E
R*
In this time diagram the period of deferral is k because the regular payments of R
start at time k + 1.
The notation R * represent k artificial payments, each equal to R, but are not
actually paid during the period of deferral.
To determine the present value of a deferred annuity, find the present value of all k +
n payments (including the artificial payments), then subtract the present value of all
artificial payments.
199
Present Value of a Deferred Annuity
where
R is the regular payment;
n is the number of payments ;
k is the number of conversion periods in the deferral
PY
The present value of a deferred annuity is given by
C
O
Example 1. On his 40th birthday, Mr. Ramos decided to buy a pension plan for
himself. This plan will allow him to claim P10,000 quarterly for 5 years starting 3
months after his 60th birthday. What one-time payment should he make on his 40th
birthday to pay off this pension plan, if the interest rate is 8% compounded quarterly?
(4)
EP
E
i 0.08
Given: R=10,000 m=4
Find: P
Solution.
The annuity is deferred for 20 years and it will go on for 5 years. The first payment is
due three months (one quarter) after his 60th birthday, or at the end of the 81st
conversion period. Thus, there are 80 artificial payments.
Number of artificial payments: k mt (4)(20) 80
Number of actual payments: n mt (4)(5) 20
Interest rate per period:
i ( 4) 0.08
0.02
m
4
If you assume that there are payments in the period of deferral, there would be a
total of k n 80 20 100 payments.
Time Diagram:
10,000 10,000
0
2 80
81
82
10,000
100
200
Thus, the present value of the deferred annuity can be solved as
P R
1 (1 j ) ( k n )
1 (1 j ) k
R
j
j
1 (1 0.02) 80
1 (1 0.02) 100
10000
10000
33,538.38
0.02
0.02
Therefore, the present value of these monthly pensions is P33,538.38.
PY
Example 2. A credit card company offers a deferred payment option for the
purchase of any appliance. Rose plans to buy a smart television set with monthly
payments of P4,000 for 2 years. The payments will start at the end of 3 months. How
much is the cash price of the TV set if the interest rate is 10% compounded monthly?
(12)
C
O
10
Given: R=4,000 m=12 i
Find: P
Solution. The annuity is deferred for 2 months and it will go on for 2 years. The first
payment is due at the end of 3 months, or at the end of the 3rd conversion period.
Thus, there are 2 artificial payments.
Number of artificial payments: k 2
Number of actual payments: n mt (12)(2) 24
i (12) 0.10
0.00833
m
12
Interest rate per period:

If you assume that there are payments in the period of deferral, there would be a
EP
E
total of k n 2 24 26 payments.
Time Diagram:
4000
4000
4000
0
1
2
3
4
26
Thus, the present value of the deferred annuity can be solved as
1 (1 j ) ( k n )
1 (1 j ) k
R
j
j
PR
4000
1 (1 0.00833) 26
1 (1 0.00833) 2
4000
85,260.53
0.00833
0.00833
Therefore, the present value of these monthly pensions is P85,260.53.
201
Solved Examples
In numbers 1 to 5, find the period of deferral in the deferred annuity
1. Monthly payments of P50,000 for 3 years that will start 8 months from now
Solution. The first payment is at time 8. The period of deferral is from time 0
to 7, which is equivalent to 7 periods or 7 months.
2. Annual payments of P2,500 for 24 years that will start 12 years from now
Solution. The first payment is at time 12. The period of deferral is from time 0 to 1,
which is equivalent to 11 periods or 11 years.
Quarterly payments of 300 for 9 years that will start 1 year from now
PY
3.
Solution. The first payment is at time 4 because there are 4 quarters in 1 year. The
period of deferral is from time 0 to 3, which is equivalent to 3 periods or 3 quarters.
Semi-annual payments of 6,000 for 13 years that will start 4 years from now
C
O
4.
Solution. The first payment is at time 8. The period of deferral is from time 0 to 7,
which is equivalent to 7 periods or 7 semi-annual intervals.
5.
Payments of 10,000 every 2 years for 30 years starting at the end of 16 years
EP
E
Solution. The first payment is at time 8 because there is one payment in every
two-year period. The period of deferral is from time 0 to 7, which is equivalent to 7
periods or 7 two-year intervals.
6. Melwin availed of a loan from a bank that gave him an option to pay P20,000
monthly for 2 years. The first payment is due after 4 months. How much is the
present value of the loan if the interest rate is 10% converted monthly?
(12)
0.10 k=3
Given: R=20,000 m=12 i
i ( m ) 0.10
m
12
n mt (12)(2) 24
Find: P
Solution. The present value of the deferred annuity can be solved as
PR
1 (1 j ) ( k n )
1 (1 j ) k
R
j
j
0.10
1 1
12
20000
0.10
12
27
0.10
1 1
12
20000
0.10
12
422,759.78
Therefore, the present value of these payments is P422,759.78.

202
7. Mariel purchased a smart television set through the credit cooperative of their
company. The cooperative provides an option for a deferred payment. Mariel
decided to pay after 2 months of purchase. Her monthly payment is computed as
P3,800 payable in 12 months. How much is the cash value of the television set if the
interest rate is 12% convertible monthly?
Given: R=3,800 m=12 i (12) 0.12 k=1
i ( m) 0.12
0.01
m
12
PY
Find:
n 12
1 (1 j ) ( k n )
1 (1 j ) k
PR
R
j
j
1 (1 0.01) 13
1 (1 0.01) 1
3800
42,345.84
0.01
0.01
C
O
3800
Therefore, the present value of these payments is P42,345.84 .
EP
E
8. Mr. Quijano decided to sell their farm and to deposit the fund in a bank. After
computing the interest, they learned that they may withdraw P480,000 yearly for 8
years starting at the end of 6 years when it is time for him to retire. How much is the
fund deposited if the interest rate is 5% converted annually?
Given: R=480,000 m=1 j 0.05
k=5 n 8
Find:
1 (1 j ) ( k n )
1 (1 j ) k
PR
R
j
j
1 (1 0.05) 13
1 (1 0.05) 5
480000
2,430,766.23
0.05
0.05
480000
Therefore, the present value of these withdrawals is P2,430,766.23.

9. A group of medical students decided to invest the money they earned from the
fund-raising project. After 6 months from today, they want to withdraw from this fund
P10,000 quarterly for 1 year to fund their medical mission. How much is the total
deposit now if the interest rate is 4% converted quarterly?
Given: R=10,000 m=4
i ( 4) 0.04
k=1
n4
i ( m) 0.04
0.01
m
4
203
Find:
1 (1 j ) ( k n )
1 (1 j ) k
PR
R
j
j
1 (1 0.01) 5
1 (1 0.01) 1
10000
10000
38,633.32
0.01
0.01
Therefore, the present value of these payments is P38,633.32.
PY
10. Bella converted her loan to light payments which gives her an option to pay
P12,000 every 2 years for 6 years. The first payment is due 4 years from now. How
much is the amount of the loan if the interest rate is 10% converted every 2 years?
Given: R=12,000
1
( since payments are made every 2 years, it is equivalent to period
2
C
O
in every year)
( m)
(1 / 2 )
0.10 k=1
i
1
(0.10)(2) 0.20
n mt (6) 3 j
m
2
Find: P
1 (1 j ) ( k n )
1 (1 j ) k
R
j
j
EP
E
PR
12000
1 (1 0.20) 4
1 (1 0.20) 1
12000
21,064.81
0.20
0.20
Therefore, the present value of these payments is P21,064.81 .

A. Find the period of deferral in each of the following deferred annuity problem.
1.
2.
3.
4.
5.
Monthly payments of P1,000 for 9 years that will start 9 months from now
Monthly payments of P200 for 6 years that will start at the end of 10 years
Semi-annual payments of P12,700 for 5 years that will start 2 years from now
Semi-annual payments of P8,500 for 8 years that will start 12 years from now
Withdrawals of P7,200 every 3 months for 9 years that will start at the end of 2
years
6. Payments of P13,000 every 3 months for 18 years that will start four years from
now
204
7. Annual payments of P600 for 7 years that will start 7 years from now
8. An amount of P1,850 payable every year for 30 years that will start 5 years from
now
9. Payments of P17,000 every 4 years for 12 years starting at the end of 12 years
10. Payments of P20,000 every 3 years for 15 years starting at the end of 12 years
B. Solve the following problems completely.
EP
E
C
O
PY
1. A loan is to be repaid quarterly for 5 years that will start at the end of 2 years. If
interest rate is 6% converted quarterly, how much is the loan if the quarterly
payment is P10,000?
2. A cash loan is to be repaid by paying P13,500 quarterly for 3 years starting at the
end of 4 years. If interest rate is 12% convertible quarterly, how much is the cash
loan?
3. A car is to be purchased in monthly payments of P19,500 for 5 years starting at
the end of 3 months. How much is the cash value of the car if the interest rate
used is 10% converted monthly?
4. A school service van is available for purchase at P23,000 monthly payable in 4
years. The first payment is due in 4 months. How much is the present value of
the van if the interest rate applied is 14% converted monthly?
5. A house and lot is to be purchased by paying P35,500 monthly for 25 years. The
first payment is due in 1 year. How much is the cash price of the house and lot if
the interest rate is 12% converted monthly?
6. A condominium unit is available at P29,000 monthly payable in 20 years. The first
payment is due in 2 years exactly the time when the condominium will be turned in to
the buyers. How much is the cash value if the interest rate is 10% convertible monthly?
7. A savings account may allow the owner to withdraw P30,000 semi-annually for 3 years
starting at the end of 3 years. How much is the savings if the interest rate is 4%
converted semi-annually?
8. Mr. Canlapan deposited his money from selling his old vehicle. The fund would allow
him to withdraw P45,000 semi-annually for 5 years starting at the end of 1 year. How
much is the amount deposited if the interest rate is 2% converted semi-annually?
9. A cellular phone may be purchased at P1,500 payable monthly for 18 months. The first
payment is due after 3 months. How much is the cellular phone if the interest rate is 12%
convertible monthly?
10. Ruben bought a laptop that is payable by monthly installment of P1,800 for 12 months
starting at the end of 2 months. How much is the cash value of the laptop if interest is at
10% convertible monthly?
205

1. Mr. Reyes borrowed P50,000 from a lending firm to start a mini-store
business. If the firm charges simple interest of 5%, how much must Mr.
Reyes pay in three years?
[5]
2. Vlad opens a bank account that gives a simple interest of 2%. How much
should Vlad invest if he wants to save P20,000 after 2 years?
[5]
PY
3. In preparation for Maries college education, her parents want to save

P400,000 after 12 years. How much should they deposit in a bank providing
an interest rate of 2% compounded quarterly?
[5]
4. How long should P50,000 be invested at 6% compounded semi-annually if it
should earn an interest of P10,000?
[5]
C
O
5. Kat is choosing between two short term investments. She can invest at 10%
simple interest per year for 1 years or 9.5% compounded monthly for the
same term. Which investment should she choose? Why?
[10]
6. Shirl deposits P10,000 every 3 months in a time deposit account giving 2%
interest rate compounded quarterly. How much will she save at the end of 5
years? How much interest is earned in all deposits?
[10]
EP
E
7. Mr. Bautista bought a car and gave an initial payment of P180,000 as down
payment. The remaining balance is to be settled by paying P18,000 at the
end of each month for 5 years. If interest is 10% compounded monthly, what
is the cash price of his car?
[10]
8. A teacher will be retiring in 15 years. At her retirement, she wants to save a

fund of one million pesos. He invested at a fund that gives 4% compounded
semi-annually. How much should she deposit every 6 months in order to
have this amount upon retirement?
[10]
9. Mr. Cama borrowed one million pesos from a bank to buy a house which he
would pay in 15 years. How much is the monthly payment for this loan if 5%
interest compounded annually is charged against the loan?
[15]
10. Reggie availed of a deferred payment scheme from a bank that gave her an
option to pay P5,500 monthly for 2 years. The first payment is due after 3
months. How much is the present value of the loan if the interest rate is 12%
converted monthly?
[15]
206

1. Blad deposited P8,000 in a bank that gives 2.5% simple interest per year.
How long will he wait if he wants it to accumulate to P10,000?
[5]
2. At what simple interest rate much P100,000 be invested so as to gain an
interest of P10,000 after 5 years?
[5]
PY
3. James borrowed P16,000 from Nadine at an interest rate of 8% compounded

semi-annually. How much does he need to pay after 3 years?
[5]
4. At what interest rate compounded quarterly will a certain amount double in 10
years?
[5]
C
O
5. Angel has P100,000 which she plans to invest in 4 years. She is choosing
between two offers. Investment A gives 6.4% compounded semi-annually
while investment B provides 6% compounded monthly. Which investment
should she choose? Why?
[10]
EP
E
6. A teacher will be retiring in 15 years. At her retirement, she wants to save a

fund of one million pesos. He invested at a fund that gives 4% compounded
semi-annually. How much should she deposit every 6 months in order to
have this amount upon retirement?
[10]
7. Cris is planning to buy a house and lot. The required down payment is
P300,000. His balance will be paid at P15,200 every month for 20 years. If
money is 12% compounded monthly, how much is the cash value of the
house and lot?
[10]
8. Christian wants to buy a new computer worth P35,000. He opted to pay it in

equal monthly payments for 3 months at 6 % compounded monthly. How
much is his monthly payment? How much is the total interest in all payments.
[10]
9. Mrs. Paro invests P5,000 every 3 months at an interest rate of
6 %
compounded annually. How much will she have in this investment at the end
of 6 years? How much interest is earned?
[10]
10. Roy purchased a house and lot by paying a down payment of P400,000 and
P20,000 monthly for 25 years. The first payment is due after one year. How
much is the cash price of the house and lot if the interest rate is 10%
converted monthly?
[10]
207
Lesson 31: Stocks and Bonds

Learning Outcome(s): At the end of the lesson, the learner is able to:
1. Illustrate Stocks and Bonds
2. Distinguish between Bonds and Stocks
Lesson Outline:
1. Definition of terms related to stocks
2. Definition of terms related to bonds
PY
STOCKS12
C
O
Some corporations may raise money for their expansion by issuing stocks. Stocks
are shares in the ownership of the company. Owners of stocks may be considered
as part owners of the company. There are two types of stocks: common stock and
preferred stock. Both will receive dividends or share of earnings of the company.
Dividends are paid first to preferred shareholders.
Stocks can be bought or sold at its current price called the market value. When a
person buys some shares, the person receives a certificate with the corporations
name, owners name, number of shares and par value per share.
EP
E
BONDS13
Bonds are interest bearing security which promises to pay amount of money on a
certain maturity date as stated in the bond certificate. Unlike the stockholders,
bondholders are lenders to the institution which may be a government or private
company. Some bond issuers are the national government, government agencies,
government owned and controlled corporations, non-bank corporations, banks and
multilateral agencies. Bondholders do not vote in the institutions annual meeting but
the first to claim in the institutions earnings. On the maturity date, the bondholders
will receive the face amount of the bond. Aside from the face amount due on the
maturity date, the bondholders may receive coupons (payments/interests), usually
done semi-annually, depending on the coupon rate stated in the bond certificate.
12
13
Stock Basics Tutorial, Accessed from http://www.investopedia.com/university/stocks/

Bonds Basics Tutorial, Accessed from http://www.investopedia.com/university/bonds/
208
Comparison of Stocks and Bonds14

Stocks
A form of equity financing or
raising money by allowing
investors to be part owners of the
company.
Bonds
A form of debt financing, or
raising money by borrowing from
investors
Stock prices vary every day.

These prices are reported in
various media (newspaper, TV,
internet, etc).
Investors can earn if the stock
prices increase, but they can lose
money if the stock prices
decrease or worse, if the
company goes bankrupt.
Investors are guaranteed interest

payments and a return of their
money at the maturity date
C
O
PY
Investors still need to consider the

borrowers credit rating. Bonds
issued by the government pose
less risk than those by companies
because the government has
guaranteed funding (taxes) from
which it can pay its loans.
Lower risk but lower yield
Can be appropriate for retirees
(because of the guaranteed fixed
income) or for those who need the
money soon (because they cannot
afford to take a chance at the stock
market)
EP
E
Higher risk but with possibility of

higher returns
Can be appropriate if the
investment is for the long term (10
years or more). This can allow
investors to wait for stock prices
to increase if ever they go low.
14
Investopedia staff (n.d.) Bond basics: What are bonds?

(http://www.investopedia.com/university/bonds/bonds1.asp)
209
Definition of Terms in Relation to Stocks

Stocks share in the ownership of a company
Dividend share in the companys profit
Dividend Per Share ratio of the dividends to the number of shares
Stock Market a place where stocks can be bought or sold. The stock market in the
Philippines is governed by the Philippine Stock Exchange (PSE)
Market Value the current price of a stock at which it can be sold
PY
Stock Yield Ratio ratio of the annual dividend per share and the market value per
share. Also called current stock yield.
C
O
Par Value the per share amount as stated on the company certificate. Unlike
market value, it is determined by the company and remains stable over
time
Example 1. A certain financial institution declared a P30,000,000 dividend for the

common stocks. If there are a total of 700,000 shares of common stock, how much is
the dividend per share?
Given: Total Dividend = P30,000,000
EP
E
Find: Dividend per Share
Total Shares = 700,000
Solution.
Total Dividend
Dividend per Share = Total Shares
30,000,000
700,000
= 42.86
Therefore, the dividend per share is P42.86.
Example 2. A certain corporation declared a 3% dividend on a stock with a par value

of P500. Mrs Lingan owns 200 shares of stock with a par value of P500. How much
is the dividend she received?
210
Given: Dividend Percentage = 3%

Par Value = P500
Number of Shares = 200
Find: Dividend
Solution.
The dividend per share is: P500 x 0.03 = P15.
Since there are 300 shares, the total dividend is:
PY
P15/share x 200 shares = P3,000

In summary,
Dividend=(Dividend Percentage)x(Par Value) x(No. of Shares)
= 3,000
Thus, the dividend is P3,000.
C
O
= (0.03)(500)(200)
EP
E
Example 3. Corporation A, with a current market value of P52, gave a dividend of P8

per share for its common stock. Corporation B, with a current market value of P95,
gave a dividend of P12 per share. Use the stock yield ratio to measure how much
dividends shareholders are getting in relation to the amount invested.
Solution.
Given: Corporation A:
Dividend per share = P8
Market value = P52
Find: stock yield ratio
dividend per share

market value
8
52
Stock yield ratio
0.1538 15.38%
211
Corporation B:
Dividend per share = P12
Market value = P95
Stock yield ratio
dividend per share

market value
12
95
0.1263 12.63%
PY
C
O
Corporation A has a higher stock-yield-ratio than Corporation B. Thus, each peso

would earn you more if you invest in Corporation A than in Corporation B. If all other
things are equal, then it is wiser to invest in Corporation A.
As Example 3 shows, the stock yield ratio can be used to compare two or more
investments.
EP
E
Definition of Terms in Relation to Bonds
Bond interest-bearing security which promises to pay (1) a stated amount of

money on the maturity date, and (2) regular interest payments called
coupons.
Coupon periodic interest payment that the bondholder receives during the time
between purchase date and maturity date; usually received semiannually
Coupon Rate the rate per coupon payment period; denoted by r
Price of a Bond the price of the bond at purchase time; denoted by P
Par Value or Face Value - the amount payable on the maturity date; denoted by
F.
If P = F, the bond is purchased at par.
If P < F, the bond is purchased at a discount.
If P > F, the bond is purchased at premium.
212
Term of a Bond fixed period of time (in years) at which the bond is redeemable
as stated in the bond certificate; number of years from time of purchase to
maturity date.
Fair Price of a Bond present value of all cash inflows to the bondholder.
Example 4. Determine the amount of the semi-annual coupon for a bond with a
face value of P300,000 that pays 10%, payable semi-annually for its coupons.
Given:
Face Value F = 300,000
Find: Amount of the semi-annual coupon

Solution.
PY
Coupon rate r = 10%
C
O
Annual coupon amount: 300,000(0.10) = 30,000.
1
30,000 15,000
2
.
Semi-annual coupon amount:
Thus, the amount of the semi-annual coupon is P15,000.
EP
E
Note: The coupon rate is used only for computing the coupon
amount, usually paid semi-annually. It is not the rate at which
money grows. Instead current market conditions are reflected by the
market rate, and is used to compute the present value of future
payments.
Example 5. Suppose that a bond has a face value of P100,000 and its maturity date
is 10 years from now. The coupon rate is 5% payable semi-annually. Find the fair
price of this bond, assuming that the annual market rate is 4%.
Given: Coupon rate r = 5%, payable semi-annually

Face Value = 100,000
Time to maturity = 10 years
Number of periods = 2(10) = 20
Market rate = 4%
0.05
Solution: Amount of semi-annual coupon: 100,000
2500
2
The bondholder receives 20 payments of P2,500 each, and P100,000 at t = 10.
213
Present value of P100,000:
Present value of 20 payments of P2,500 each:
PR
PY
Convert 4% to equivalent semi-annual rate:
1 (1 j ) n
1 (1 0.019804) 20
2500
40,956.01
j
0.019804
C
O
Price = 67,556.42 + 40,956.01 = 108,512.43.
Thus, a price of P108,512.14 is equivalent to all future payments, assuming an

annual market rate of 4%.
Solved Examples
EP
E
1. A financial institution declared a dividend of P75,000,000 for its common stock.

Suppose there are 900,000 shares of common stock, how much is the dividend
per share?
Solution:
Given: Total Dividend = P75,000,000
Total Shares = 900,000
Find: Dividend per Share
Dividend per Share =
Total Dividend
Total Shares
75,000,000
900,000
= 83.33
Therefore, the dividend per share is P83.33.
2. The ABC corporation gave out P38 dividend per share for its common stock. The
market value of the stock is P108. Determine the stock yield ratio.
Solution:
Given: Dividend per share = P38
Market value = P108
214
Stock yield ratio
dividend
market value
38
108
= 0.35
Therefore, the stock yield ratio is 0.35 .
Stock yield ratio
27
93
C
O
PY
3. A bank declared a dividend of P27 per share for the common stock. If the
common stock closes at P93, how large is the stock yield ratio on this
investment?
Solution:
Given: Dividend per share = P27
Market value = P93
dividend
market value
EP
E
= 0.29
Therefore, the stock yield ratio is 0.29 .
4. Find the amount of the semi-annual coupon for a P200,000 bond which pays 5%
convertible semi-annually for its coupons .
Solution:
Given:
Face Value F = P200,000
Nominal yield i = 5%
Find: Amount of the semi-annual coupon
0.05
Fr 200,000
5000 .
2
Thus, the amount of the semi-annual coupon is P5000.
5. Determine the amount of semi-annual coupon paid for a 3% bond with a face
value of P100,000 which matures after 8 years. How many coupons are paid?
Solution:
Given: vvFace Value F = P100,000
215
Nominal yield i = 3%
Find: Number and Amount of each semi-annual coupon
0.03
Fr 100,000
1500 .
2
In 8 years, there are 8 x 2 = 16 payments.
Thus, each semi-annual coupon is P1,500, paid 16 times every six months.
6. A certain bond pays coupons of P5,000 every six months for .
Face Value = 120,000

Time to maturity = 8 years
Market rate = 6%
Solution:
C
O
Number of periods = 2(8) = 16
PY
Given: Semi-annual coupons = 1,000
The bondholder receives 16 payments of P5,000 each, and P120,000 at t = 8.
EP
E
Convert 6% to equivalent annual rate:
Present value of P120,000:
Present value of 16 semi-annual payments of P5,000 each with 3% interest per

period:
P R
1 (1 j ) n
1 (1 0.03) 16
5000
62805.51
j
0.03
Price = 74,780.03 + 62805.51 = 137,585.54.

Thus, the fair price of the bond isP137,585.54.
216
C
O
PY
1. Stockholder A got 4500 shares of stocks from XYZ Corporation. The par value is
P 150. How much is the dividend if the percentage is 3%?
2. Mr. Roman purchased 1000 shares of stocks at P25 par value. How much is his
dividend if the percentage declared by the company is 2%?
3. A certain land developer declared a dividend of P 23,000,000 for its common
stock. Suppose there are 500,000 shares of common stock, how much is the
dividend per share?
4. A financial institution will give out a dividend of P57,000,000 for its common stock.
Suppose there are 700,000 shares of common stock, how much is the dividend
per share?
5. A resort company gave out P11 dividend per share for its common stock. The
market value of the stock is P17. Determine the stock yield ratio.
6. A telecommunication company gave out P800 dividend per share for its common
stock. The market value of the stock is 1180. Determine the stock yield ratio.
7. Find the amount of the semi-annual coupon for a P110,000 bond which pays
4.5% convertible semi-annually for its coupons .
8. Find the amount of the semi-annual coupon for a P25,000 bond which pays 2.5%
convertible semi-annually for its coupons .
EP
E
9. A bond promises to pay the bondholder equal payments of P6,000 in six-month

intervals for 30 years. If the face amount is P450,000, what is the fair price of the
bond? Assume that the market rate is 2% compounded annually.
Lesson 32: Market Indices for Stocks and Bonds
Learning Outcome(s): At the end of the lesson, the learner is able to describe the
different markets for stocks and bonds, and analyze the different market indices for
stocks and bonds
Lesson Outline:
1.
Market Indices for Stocks
2.
Market Indices for Bonds
Definition: A stock market index is a measure of a portion of the stock market.

One example is the PSE Composite Index or PSEi. It is composed of 30
companies15 carefully selected to represent the general movement of market prices.
15
http://www.pse.com.ph/stockMarket/home.html
217
The up or down movement in percent change over time can indicate how the index is
performing.
Other indices are sector indices, each representing a particular sector (e.g.,
financial institutions, industrial corporations, holding firms, service corporations,
mining/oil, property)16.
The stock index can be a standard by which investors can compare the performance
of their stocks. A financial institution may want to compare its performance with those
of others. This can be done by comparing with the financials index.
Stock Index Tables
%Chg
0.19
0.16
0.037
1.07
0.33
1.00
0.24
C
O
Chg
14.20
6.58
2.42
125.08
9.85
16.27
28.91
EP
E
Val value of the index
Val
7,523.93
4,037.83
6,513.37
11,741.55
2,973.52
1,622.64
11,914.73
Index
PSEi
Financials
Holding Firms
Industrial
Property
Services
Mining and
Oil
PY
Stock indices are reported in the business section of magazines or newspapers, as

well as online (http://www.pse.com.ph/stockMarket/home.html). The following table
shows how a list of index values is typically presented (values are hypothetical).
Chg change of the index value from the previous trading day (i.e., value today
minus value yesterday)
%Chg ratio of Chg to Val (i.e., Chg divided by Val)
Stock Tables
Various information about stock prices can be reported. The following table shows
how information about stocks can be presented (values are hypothetical).
52-WK 52-WK
HI
LOW STOCK
94
88
16
44
25
AAA
BBB
HI
60
45
LO
DIV
35.5
32.7
.70
.28
VOL(100s) CLOSE
2050
10700
57.29
45.70
NETCHG
0.10
0.2
Ibid.
218
52-WK HI/LO highest/ lowest selling price of the stock in the past 52 weeks
HI/LO highest/ lowest selling price of the stock in the last trading day
STOCK three-letter symbol the company is using for trading
DIV dividend per share last year
CLOSE- closing price on the last trading day.
PY
VOL (100s) number of shares (in hundreds) traded in the last trading day. In this
case, stock AAA sold 2,050 shares of 100 which is equal to 20,500 shares.
C
O
NETCHG- net change between the two last trading days. In the case of AAA, the net
change is 0.10. The closing price the day before the last trading day is
P57.29 P0.10 = P57.19.
EP
E
Buying or Selling Stocks

To buy or sell stocks, one may go to the PSE personally. However, most transactions
nowadays are done by making a phone call to a registered broker or by logging on to a
reputable online trading platform. Those with accounts in online trading platforms may
often encounter a table such as the following.
Bid
Ask/Offer
Size
Price
Price
Size
122
354,100
21.6000
21.8000
20,000
1
9
81,700
21.5500
21.9000
183,500
4
42
456,500
21.5000
22.1500
5,100
1
2
12,500
21.4500
22.2500
11,800
4
9
14,200
21.4000
22.3000
23,400
6
In the table, the terms mean the following:

Bid Size the number of individual buy orders and the total number of shares
they wish to buy
Bid Price the price these buyers are willing to pay for the stock
Ask Price the price the sellers of the stock are willing to sell the stock
Ask Size how many individual sell orders have been placed in the online
platform and the total number of shares these sellers wish to sell.
For example, the first row under Bid means that there are a total of 122 traders who wish
to buy a total of 354,000 shares at P21.60 per share. On the other hand, the first row
under Ask means that just one trader is willing to sell his/her 20,000 shares at a price of
P21.80 per share.
219
Bond Market Indices

Definition: A bond market index is a measure of a portion of the bond market.
PY
The main platform for bonds or fixed income securities in the Philippines is the
Philippine Dealing and Exchange Corporation (or PDEx). Unlike stock indices which
are associated with virtually every stock market in the world, bond market indices are
far less common. In fact, other than certain regional bond indices which have subindices covering the Philippines, our bond market does not typically compute a bond
market index. Instead, the market rates produced from the bond market are interest
rates which may be used as benchmarks for other financial instruments.
The Bond Market and Government Bonds
C
O
Government bonds are auctioned out to banks and other brokers and dealers every
Monday by the Bureau of Treasury. Depending on their terms (or tenors), these
bonds are also called treasury bills (t-bills), treasury notes (t-notes), or treasury
bonds (t-bonds). The resulting coupon rates and the total amount sold for these
bonds are usually reported by news agencies on the day right after the auction.
Since these bond transactions involve large amounts, these bonds are usually
limited to banks, insurance firms, and other financial institutions. The banks may then
re-sell these bonds to its clients.
EP
E
Although the coupon rate for bonds is fixed, bond prices fluctuate because they are
traded among investors in what is called the secondary market. These prices are
determined by supply and demand, the prevailing interest rates, as well as other
market forces. As the price of the bond may increase or decrease, some investors
may choose to sell back to banks the bonds they acquired before their maturity to
cash in their gains even before maturity.
Despite the fact that bond investing is considered safer than stock investing, there is
still some risk involved. The most extreme scenario is default by the issuer. In this
case, the investor can lose not only the coupons, but even the money invested in the
bond. Bond investors should thus be aware of the financial condition of the issuer of
the bond and of prevailing market conditions.
Solved Example
1. Consider the following listing on stocks and answer the questions that follow:
52 weeks
HI
LO
STOCK
DIV
YLD%
120
16
105
12
GGG
HHH
3.5
0.9
2.8
1.1
VOL(100s)
4050
1070
CLOSE
118.50
15.80
NETCHG
-0.50
0.10
220
For Stocks GGG and HHH:

1.
2.
3.
4.
5.
What was the lowest price of the stock for the last 52 weeks?
What was the dividend per share last year?
What was the annual percentage yield last year?
What was the closing price in the last trading day?
What was the closing price the day before the last trading day?
C
O
PY
Answers:
For Stock GGG:
1. Lowest Price = P 105.00
2. Dividend per Share = P3.50
3. YLD% = 2.8%
4. Closing Price = P 118.50
5. Closing Price (the day before the last trading day) = P 118.50 +P 0.50
= P 119.00
EP
E
For Stock HHH:

1. Lowest Price = P 12.00
2. Dividend per Share = P0.90
3. YLD% = 1.1%
4. Closing Price = P15.80
5. Closing Price (the day before the last trading day) = P15.80 - P 0.10
= P 15.70

Consider the following listing on stocks and answer the questions that follow:
52 weeks
LO
STOCK
HI
75
34
65
23
JJJ
KKK
DIV
YLD%
2.5
1.7
2.8
1.75
VOL(100s)
1500
1200
CLOSE
70
28
NETCHG
2
-3
For Stock JJJ :

1.
2.
3.
4.
5.
What was the highest price of the stock for the last 52 weeks?
What was the dividend per share last year?
What was the annual percentage yield last year?
What was the closing price in the last trading day?
What was the closing price the day before the last trading day?
221
For Stock KKK:

6. What was the lowest price of the stock for the last 52 weeks?
7. How many shares were traded in the last trading day?
8. What was the dividend per share?
9. What was the closing price in the last trading day?
10. What was the closing price the day before the last trading day?
Lesson 33: Theory of Efficient Markets
PY
Learning Outcome(s): At the end of the lesson, the learner is able to interpret the
theory of efficient markets.
1. The Efficient Market Hypothesis

2. Different Types of Efficient Markets
Definition of Terms
C
O
Lesson Outline:
EP
E
Fundamental Analysisanalysis of various public information (e.g., sales, profits)

about a stock
Technical Analysis analysis of patterns in historical prices of a stock
Weak Form of Efficient Market Theory asserts that stock prices already
incorporate all past market trading data and information (historical price information)
only
Semistrong Form of Efficient Market Theory asserts that stock prices already
incorporate all publicly available information only
Strong Form of Efficient Market Theory asserts that stock prices already
incorporate all information (public and private)
The Efficient Market Hypothesis
The theory of efficient markets was developed by Eugene Fama in the 1970s. It
says that stock prices already reflect all the available information about the stock. 17
This means that stock prices are accuratethey already give a correct measure of
the value of a stock precisely because the prices are already based on all
information and expectation about the stock.
17
http://www.investopedia.com/terms/e/efficientmarkethypothesis.asp
222
The slogan Trust market prices! can sum up the theory. One can trust market
prices because they give an accurate measure of all possible information about the
stock.
Since all stocks are correctly priced (because they are based on all available
information), then there is no such thing as discovering undervalued or overvalued
stocks from which to gain profits. Thus, the theory implies that investors cannot
beat the market even if they do a lot of research. In the end, investors will just find
out that the correct price is what is already published.
There are three form of efficient market, as discussed by Clarke, Jandik, and
Mandelker18.
C
O
PY
For the weak form of the theory, stock prices already reflect all past market trading
data and historical information only. Thus, knowing past data will not give investors
an edge. If the weak form of the theory is true, then a technical analysis (an
analysis of past prices) will not yield new information and hence will not lead to
systematic profits.
For semistrong form of the theory, stock prices already reflect all publicly available
data, including those involving the product, management team, financial statement,
competitors and industry. If the semistrong form of the theory is true, then doing a
fundamental analysis (gathering all public data) will still not lead to systematic
profits.
EP
E
For the strong form of the theory, all information (public and private) are
incorporated in the price. If the strong form of the theory is true, then investors still
cannot gain systematic profits even if they gather information that is not yet publicly
known.
Solved Examples
Provide a counter-argument to the following statement.

1. We cannot beat the stock market because stock prices already reflect all the given
information about the stocks.
Sample counter-argument: Information about stocks can change quickly, and it

takes time (and high-speed computers) before a stock price can reflect all
information.
2.We can beat the stock market because several people have already gained
millions (or even billions) from stock trading.
18
Clarke, J., Jandik, T., & Mandelker, G. (n.d.) The efficient markets hypothesis. http://m.e-mh.org/ClJM.pdf
223
Sample counter-argument: These people could just be lucky. By the theory of

efficient markets, investors cannot systematically gain from the stock market even if
they
do
a
lot
of
research.
3. One can beat the stock market because stock prices fluctuate very often (every
day, hour, and minute), and they can be overvalued or undervalued.
Sample counter-argument: The theory of efficient markets states that all
information is incorporated right away and constantly. Thus stock prices tend to
respond quickly.
PY
4. One can beat the stock market by gathering more information about stocks to
determine the best place to invest.
Sample counter-argument: The theory of efficient market states that all the needed
information, public or private, are already incorporated in stock price.
5. One can beat the stock market by obtaining the services of financial analysts.
C
O
Sample counter-argument: Financial analysts may help in the analysis of stock

prices especially on researching on mispriced stocks. But financial analysis may be
costly. Some say that the gain may not be enough to pay the cost of a financial
analysis.
True or False.
EP
E
1. Stocks are shares in the ownership of a company.

2. The theory of efficient markets states that prices of investments reflect all available
information.
3. The weak form of the theory of efficient markets states that only all public
information are incorporated in the price of stocks.
4. The semistrong form of the theory of efficient markets states that only all past
available information are incorporated in the price.
5. The strong form of the theory of efficient markets states that all information (public
and private) are incorporated in the price.
6. Fundamental analysis is the analysis of historical prices.
7. Technical analysis is the analysis of past prices.
8. The theory of efficient market is developed by Eugene Fama.
224
Lesson 34: Business and Consumer Loans

business and consumer loans, and distinguish between business and consumer
loans.
Lesson Outline:
1. Business and Consumer Loans
C
O
PY
Definition of Terms
Business Loan money lent specifically for a business purpose. It may be used to
start a business or to have a business expansion
Consumer Loan money lent to an individual for personal or family purpose
Collateral assets used to secure the loan. It may be real-estate or other
investments
Term of the Loan time to pay the entire loan
In Examples 1-5, identify whether the following is a consumer or business loan.
Example 1. Mr. Agustin plans to have a barbershop. He wants to borrow some
money from the bank in order for him to buy the equipment and furniture for the
barbershop.
Solution. Business loan
EP
E
Example 2. Mr and Mrs Craig wants to borrow money from the bank to finance the
college education of their son.
Solution. Consumer loan
Example 3. Mr. Alonzo wants to have some improvements on their 10-year old
house. He wants to build a new room for their 13-year old daughter. He will borrow
some money from the bank to finance this plan.
Solution. Consumer loan
Example 4. Mr. Samson owns a siomai food cart business. He wants to put another
food cart on a new mall in the other city. He decided to have a loan to establish the
new business.
Example 5. Roan has a computer shop. She owns 6 computers. She decided to
borrow some money from the bank to buy 10 more computers.
225

Identify the following whether the following illustrates a business loan or a consumer
loan.
1. Mr. Lim wants to have another branch for his cellphone repair shop. He decided
to apply for a loan that he can use to pay for the rentals of the new branch.
2. Mr. Trillas runs a trucking business. He wants to buy three more trucks for
expansion of his business. He applied for a loan in a bank.
PY
3. Mrs. Alonzo decided to take her family for a vacation. To cover the expenses,
she decided to apply for a loan.
4. Glenn decided to purchase a condominium unit near his workplace. He got a
loan worth P2,000,000.
C
O
5. Mr. Galang renovated her house forP80,000. This was made possible because
of an approved loan worth P75,000.
Lesson 35: Solving Problems on Business and

Consumer Loans (Amortization and Mortgage)
1.
2.
3.
4.
5.
EP
E
problems on business and consumer loans (amortization and mortgage).
Lesson Outline:
Definition of terms
Loan Repayment
Interest Amount
Mortgage and Amortization
Outstanding Balance
Definition of Terms
Amortization Method method of paying a loan (principal and interest) on

installment basis, usually of equal amounts at regular
intervals
Mortgage a loan, secured by a collateral, that the borrower is obliged to pay at
specified terms.
Chattel Mortgage a mortgage on a movable property
Collateral assets used to secure the loan. It may be a real-estate or other
investments
Outstanding Balance any remaining debt at a specified time
226
Example 1. Mr. Garcia borrowed P1,000,000 for the expansion of his business. The
effective rate of interest is 7%. The loan is to be repaid in full after one year. How
much is to be paid after one year?
Solution.
Given: P = 1,000,000 j 0.07
n=1
Find F.
Solution. F P(1 j ) 1,000,000(1 0.07) 1,070,000
PY
An amount of P1,070,000 must be paid after one year.
EP
E
C
O
Example 2 (Chattel mortgage). A person borrowed P1,200,000 for the purchase of

a car. If his monthly payment is P31,000 on a 5-year mortgage, find the total amount
of interest.
Given: P = 1,200,000
Monthly payment = 31,000
Solution.
The total amount paid is given by
Total Amount = (31,000)(12 months)(5 years)
= 1,860,000
Thus, the total interest is the difference between the total amount paid and the
amount of the mortgage;
Total Interest = 1,860,000 1,200,000
= 660,000
Example 3. If a house is sold for P3,000,000 and the bank requires 20% down
payment, find the amount of the mortgage.
Solution.
Down payment = down payment rate x cash price
= 0.20(3,000,000)
= 600,000
Amount of the Loan = cash price - down payment
= 3,000,000 600,000
= 2,400,000
The mortgage amount is P2,400,000.
227
Example 4. Ms Rosal bought a car. After paying the downpayment, the amount of
the loan is P400,000 with an interest rate of 9% compounded monthly. The term of
the loan is 3 years. How much is the monthly payment?
Solution.
Given:
(12)
P 400,000 i 0.09 , j
i (12) 0.09
0.0075 n=36
12
12
P
400,000
12,719.89
n
1 (1 j ) 1 (1 0.0075) 36
n
0.0075
C
O
The regular payment is P12,719.89.
PY
Find: the regular payment R
Outstanding Balance
Recall that the outstanding balance of a loan is the amount of the loan at this time.
EP
E
Note: In this case, the house itself is used as the mortgaged property.
Also please take note that the other way to solve this is to directly
compute the mortgaged amount by multiplying the cash value of the
property by the percentage of the financed amount, which in this case,
100%-20%=80%. Thus, the amount of the loan is given by
(0.80)(P3,000,000)= P2,400,000.
One method to compute the outstanding balance is to get the present value of all
remaining payments. This method is called the prospective method.
We use the symbol Bk to denote the outstanding balance after k payments. In other
books, pOBk is used (the p stands for prospective).
Example 5. Mrs. Se borrowed some money from a bank that offers an interest rate
of 12% compounded monthly. His monthly amortization for 5 years is P11,122.22.
How much is the outstanding balance after the 12th payment?
Given: R = 11,122.22 i
(12)
0.12 j
i (12) 0.12
0.01
12
12
k=12 number of payments paid

n k=48since only 48 payments remain
Find: present value of 48 future payments (since there are 48 payments left)
228
Solution.
1 (1 j ) ( n k )
1 (1.01)48
Bk R
11
,
122
.
22
422,354.73
j
0
.
01
The outstanding balance is P422,354.73.
P =3,200,000
i (12) 0.12 ,
i (12) 0.12
0.01
12
12
,
C
O
(a) Given:
PY
Example 6. Mr. and Mrs. Banal purchased a house and lot worth P4,000,000. They
paid a down payment of P800,000. They plan to amortize the loan of P3,200,000 by
paying monthly for 20 years. The interest rate is 12% convertible monthly.
(a) How much is the monthly payment?
(b) What is the total interest paid?
(c) What are the principal and interest components of the 51st payment?
Solution.
Find: regular payment R
n = mt = (12)(20) = 240
P
1 (1 j )
3,200,000
1 (1 0.01) 240
0.01
EP
E
then R
1 (1 j ) n
P R
,
Using the formula
35,234.76
Therefore, the monthly payment is P 35,234.76.

(b) Given:
P =3,200,000 R = 35,234.76
n = 240
Find: total interest paid
There are 240 payments of P35,234.76. The total payment is

240 P 35,234.76 = P8,456,342.40.
The principal is only P 3,200,000.
Interest Amount Total Payments - Principal

8,456,342.40 3,200,000 5,256,342.40
The interest amount is P5,256,342.40
Note: You may be surprised to learn that much of what is being paid is for the
interest. This is particularly true if a loan is being paid over a long period of time.
229
c) Given:
P =3,200,000 i
(12)
0.12
i (12) 0.12
0.01
12
12
n = mt = (12)(20) = 240
R = 35,234.76
Find: principal and interest components of the 51st payment
The 51st payment of P35,234.76 is partly used to pay for the principal, and partly to
pay for the interest.
PY
Step 1: Get the outstanding balance after the 50th payment (the balance after the
50th payment is what the 51st payment will be for).
Since 50 payments have been paid already, there will be 190 remaining payments.
The outstanding balance after the 50th payment is:
C
O
1 (1 j ) 190
1 (1 0.01) 190
B50 R
35
,
234
.
76
2,991,477.63
j
0.01
Step 2: After the 50th payment, the outstanding balance is P2,991,477.63.
Since the interest rate per period is j = 0.01, then the remaining balance of
P2,991,477.63 will be charged an interest of (0.01)(2,991,477.63) 29,914.78
EP
E
The 51st payment of P35,234.76 will be used to pay for this interest. Thus, the
interest component I 51 of the 51st payment is P29,914.78.
The remaining portion of the 51st payment is the principal component, denoted by
PR51 , is:
PR51 R I 50 35,234.76 29,914.78 5,319.98
Thus, for the 51st payment, the part that goes to pay the interest is P29,914.78 and
the
part
that
goes
to
pay
the
principal
is
P5,319.98.
Solved Examples
1. A loan of P300,000 is to be repaid in full after 2years. If the interest rate is 9%

per annum. How much should be paid after 2 years?
Solution.
Given: P = P300,000
j 0.09
n=2
Find F.
230
F P(1 j ) n 300,000(1 0.09) 2 356,430

The amount to be paid is P356,430.
2.
If a car loan of P790,000 requires a 20% downpayment. How much is the

mortgage?
Solution.
= down payment rate x cash price
= 0.20(790,000)
= 158,000
Amount of the Loan = cash price down payment
= 790,000 158,000
= 632,000
The mortgage is P632,000.
PY
Down payment
C
O
3. A person borrowed P1,000,000 for the purchase of a car. If his monthly payment is
P25,000 on an 8-year mortgage, find the total amount of interest.
EP
E
Solution.
The total amount paid is given by
Total Amount = (25,000)(12 months)(8 years)
= 2,400,000
Thus, the total interest is the difference between the total amount paid and the
amount of the mortgage;
Total Interest = 2,400,000 1,000,000
= 1,400,000
The total interest is P1,400,000.
4. A consumer loan worth P80,000 is to be repaid in 12 months at 8% convertible
monthly. How much is the monthly payment?Solution.
(12)
0.08 j
i (12) 0.08
n=12
12
12
Given: A 80,000 i
P
1 (1 j )
80,000
6,959.07
.08 12
1 (1 12 )
.08
12
The monthly payment is P6,959.07.
231
5. A business loan worth P250,000 is to repay in quarterly installment for 1 year.

How much is the quarterly payment if money is worth 8% converted quarterly?
Solution.
Given : P 250,000 i
(4)
i ( 4) 0.08
0.02 n=4
0.08 j
4
4
P
1 (1 j ) n
250,000
1 (1 0.02) 4
0.02
65,655.94
PY
The quarterly payment is P65,655.94.
Solution.
Given: P =500,000
n=10
k=6
j 0.10
R = 81,372.70
C
O
6. Mr. Baldonado is considering to pay his outstanding balance after 6 years of

payment. The original amount of the loan is P500,000 payable annually in 10
years. If the interest rate is 10% per annum and the regular payment is
P81,372.70 annually, how much is the outstanding balance after the 6thpayment?
EP
E
Find: outstanding balance after 6 payments (or present value of the remaining 4
payments)
1 (1 j ) 4
1 (1 0.10) 4
B6 R
81
,
372
.
70
257,940.51
0.10
i
The outstanding balance after the 6th payment is P257,940.51.
7. Mrs. Tan got a business loan worth P800,000. She promised to pay the loan
semi-annually in 5 years. The semi-annual payment is P103,603.66 if money is
worth 10% converted semi-annually. How much is the outstanding balance after
the third payment?
Solution.
Given: A =800,000 R = 103,603.66
n= 10
i (2) 0.10
i ( 2)
0.05
2
k=3
Find: outstanding balance after 3 payments (or present value of the remaining 7
payments)
232
1 (1 j ) 7
1 (1.05) 7
B3 R
103603
.
66
599,489.46
.05
j
The outstanding balance after the 3rd payment is P599,489.46.

8. Alana and her family acquired a loan amounting to P2,000,000. Her monthly
amortization is P21,064.48 for 25 years. The interest rate is 12% convertible
monthly. Find the amount of interest and the amount of principal paid on the 121st
payment.
Solution.
i (12) 0.12
P =2,000,000 R = 21,064.48
i (12) 0.12
0.01
12
12
PY
Given:
n = 300 (monthly for 25 years) k=120 (120 payments have been made already)
Find: interest and principal components of the 121st payment
C
O
We first need to find the outstanding balance after 120 payments. After the 120th
payment, there will be 180 remaining payments.
1 (1 i) 180
1 (1 0.01) 180
B120 R
21064.48
1,755,127.53
i
0.01
I121 i ( P50 ) (0.01)(1,755,127.53) 17,551.28
EP
E
PR121 R I 50 21,064.48 17,551.28 3,513.20

Thus, for the 121st payment, the part that goes to pay the interest is P17,551.28 and
the part that goes to pay the principal is P3,513.20.
A loan amounting to P10,000 is to be paid annually for 4 years with an interest
rate of 5% compounded annually. The annual amortization is P2,820.11.
Complete the following table, and be guided by the questions below.
9.
Period
0
1
2
3
4
TOTALS
Regular
Payment R
B
2,820.11
2,820.11
2,820.11
C
Interest
Component
of Payment
500
F
262.18
134.29
D
Principal
Component
of Payment
2,320.11
G
2,557.93
2685.82
E
Outstanding
Balance
A
7,679.56
5,243.54
H
I
233
A. How much is the amount of the loan? (outstanding balance at period 0)

B. How much is the first annual payment?
C. How much is the total amount of payment?
D. How much is the total interest paid?
E. How much is the total payments for the principal?
F. For the second payment, how much goes to pay the interest?
G. For the second payment, how much goes to pay the principal?
How much is the outstanding balance after the 3rd payment?
PY
I. How much should be the entry in the outstanding balance after the last payment
C
O
Solution.
A. The amount of the loan is P10,000, and this is the outstanding balance at time 0.
B. All payments are the same, so the answer isP2,820.11.
C. The total amount paid is (4)(P2820.11)= P11,280.44.
D. The total interest paid is = Total paid Total payment
= 11,280.44 10,000=P1,280.44
EP
E
E. The total payments for the principal must be equal to the loan amount P10,000.
F. The outstanding balance after one payment is given in the table(P7,679.56). This
amount will be charged 5% interest:
I 2 i ( P1 ) (0.05)(7,679.56) P383.98
G. The amount of the second payment that goes to pay the principal is
PR2 R I 2 2,820.11 383.98 P2,436.13
H.
Since, after the third payment, there is only 1 remaining payment. The
outstanding balance after the third payment is given by
1 (1 j ) ( n k )
1 (1 0.05) 1
2820
.
11
P3 R
2685.82
j
0
.
05
I. Since all payments are made already, the outstanding balance should be 0.
234

1. A business loan of P1,000,000 is to be repaid in full after 3 years. If the interest
rate is 7% per annum. How much should be paid after 3 years?
2. Mr. Espiritu obtained a P470,000 car loan that will be paid in full after 2 1/2 years.
If interest is at 12% compounded every 6 months, how much is to be paid after 2
years?
3. Ms. Newman had a P55,000 business loan that is to be paid in 8 months. If
interest rate is 12% compounded monthly, how much should be paid after 8
months?
PY
4. A consumer loan of P80,000 is obtained that is due 3 months from now. If interest
rate is 8% compounded quarterly, how much should be paid?
5. For the purchase of an SUV worth P1,200,000, the bank requires a minimum
amount of 20% down payment, find the mortgaged amount.
C
O
6. For the purchase of a farm , the bank requires a 30% down payment . How much
is the mortgaged amount if the cash value of the farm is P3,500,000?
7. Suppose that a condominium unit is purchased for P2,800,000 and the bank
requires 30% down payment, how much is the mortgaged amount?
8. A house and lot has a cash value of P600,000. The bank offers a minimum
amount of 25% down payment. How much is the loan or the mortgaged amount?
EP
E
9. A family obtained a P4,500,000 mortgage. If the monthly payment is P50,000 for

12 years, how much is the total interest paid?
10. For a purchase of a P700,000 car, the monthly amortization is P20,500 for 4
years. How much is the total interest?
11. Ms. Santos obtained a condominium unit loan worth P2,700,000. If the monthly
payment is P29,100 for 15 years, how much is the total interest?
12. Mr. Morales obtained a 5-year mortgage for P1,700,000. If his monthly payment
is P47,500 , how much is the total interest?
13. A consumer loan worth P75,000 is to be repaid in 18 months at 12% convertible
monthly. How much is the monthly payment?
14. Mr. Oclarit got a P90,000 loan to be repaid semi-annually in 3 years. If interest
rate is 14% compounded semi-annually, how much is the semi-annual payment?
15. A loan of P50,000 is to be amortized by paying quarterly in 1 year. If money is
worth 10% compounded quarterly, how much is the monthly installment?
16. Mr and Mrs Avila decided to purchase a P5,000,000 house and lot. After
deducting the downpayment, the mortgage amount is P4,000,000. If interest is at
235
10% compounded monthly, how much is the monthly installment if they plan to
amortize the loan in 20 years?
17. Mr and Mrs Ramos had a housing loan payable monthly for 25 years. After
paying for 12 years, how many payments are left?
18. Mr. Ramos got a business loan worth P100,000 payable quarterly for 3 years. In
1 years, how many payments are left?
19. Ms. Castillo got a business loan worth P850,000. She promised to pay the loan
quarterly in 4 years. The quarterly payment is P65,109.14 if money is worth 10%
converted quarterly. How much is the outstanding balance after the second year?
PY
20. A loan is being amortized by paying P12,000 monthly for 36 months. If money is
worth 9% compounded monthly, how much is the outstanding balance after 12
payments?
(12)
0.06 ?
now if i
C
O
21. Gabby is paying P1,000 monthly for the payment of his loan for 2 years now. At
the moment, he still has 6 remaining payments. How much is the outstanding
22. Ms. Lim pays P3,500 quarterly for a loan for 1 year now. She still needs to pay
quarterly for another 3 years. How much is the outstanding balance now, if
i (4) 0.12 ?
EP
E
23. A consumer loan has a scheduled payment of P2,000 every quarter for 3 years.
If money is worth 9% compounded quarterly, how much of the 5th payment goes
to pay the interest?
24. A business loan is to be amortized monthly by paying P10,000 in 4 years. How
much is the interest paid on the last payment if interest rate is 12% monthly?
25. Mr. Bainto has a loan that is to be amortized by paying monthly payments of
P3,200 for 1 year. After paying for 6 months, he decided to pay off the loan. How
much of the 6th payment goes to pay the principal if money is worth 12%
compounded monthly?
26. Ms.Lachica got a car loan that requires a monthly payment of P13,000 for 5
years. She plans to pay off the loan after paying for 3 years. How much of the
13th payment goes to pay the principal if the interest rate is 10% compounded
monthly?
27. Study the amortization schedule and fill in the blanks.
28. A loan amounting to P100,000 is to be paid annually for 4 years with an interest
rate of 10% per annum. The annual amortization is P31,547.08.
236
Period
Interest
Component
of Payment
Regular
Payment R
Principal
Component
of Payment
Outstandin
g Balance
A
0
1
10,000
21,547.08
78,452.92
31,547.08
54,751.13
31,547.08
5,475.11
26,071.97
28,679.16
31,547.08
2,867.92
28,679.16
PY
TOTALS
C
O
A. How much is the amount of the loan?

B. How much is the payment on the first period?
C. For the second payment, how much goes to pay the interest?
D. For the second payment, how much goes to pay the principal?
E. How much is the outstanding balance after the 4th payment?
Topic Test 1:
Answer the following problems completely.
[5 POINTS each]
1. How much is the dividend for 1,000 shares of common stock at a par value of P20
if the dividend percentage is 2%?
EP
E
2.If the declared dividend is P50,000,000 and if there are a total of 500,000 shares
of common stock, how much is the dividend per share?
3. A financial institution declared a 2.5% dividend on a stock with a par value of
P800. Mrs Lingan owns 1000 shares of stock with a par value of P800. How much
is the dividend she received?
4. A bank showed that for a certain trading day, its opening price for its common
stock is P 60 while its closing price is P 62.5. What is the percent change on this
trading day?
5. If the annual earnings per share in stocks (dividend) of a certain company is P80
and yesterdays closing price is P130, what is the price-to-earnings ratio?
6. What is the current yield of a bond with a face value of P50,000 that pays coupons
at 5% converted semi-annually and bought at face value?
7. What is the current yield of a bond with a face value of P200,000 that pays
coupons at 4% converted semi-annually and bought at P 210,000?
8. What is the amount of the semi-annual coupon for a bond with a face value of
P100,000 that pays 8% convertible semi-annually for its coupons?
For nos. 9-12, given the following listing on stocks, answer the questions that follow:
237
52 weeks
HI
LO
50
35.8
43.5 37
9.
STOCK
AAB
BBA
DIV YLD% PE
.40
.35
1.2
1.9
VOL(100s) CLOSE
10
5.7
2000
1200
57.29
40.70
NETCHG
1.3
-0.5
What was the dividend per share last year for stock AAB?
PY
10. What was the annual percentage yield last year for stock BBA?
11. What was the closing price in the last trading day for stock BBA?
12. For stock AAB, what was the closing price the day before the last trading day?
52 weeks
101
104
88
100
NAME
XXY 5 21
YYX 4 22
CUR
YLD
3.1
27
WEEKLY
SALES HIGH LOW LAST NET
(1000)
CHG
20
100
98 100
-1
30
102
97 101
1
LOW
EP
E
HIGH
C
O
For nos. 13-16, refer to the following listing on bonds:
13. What is the current yield of the bond XXY?

14. What is the maturity year of the bond YYX?
15. What is closing price of the bond XXY in the last trading day?
16. For a P1,000 YYX bond ,what is the closing price last week?
17. If a house is sold for P5,000,000 and the bank requires 20% down payment, find
the amount of the mortgage.
For nos 18-20, refer to the following problem: A loan of P1,000 is repaid by paying
P263.80 annually for 5 years. If interest rate is 10% annually,
18. How much of the 1st payment goes to pay the interest?
19. How much of the 1st payment goes to pay the principal?
20. After 4 years, how much is the pay off for the loan?
238
Topic Test 2
Answer the following problems completely.
1. What is the current yield of a bond with a face value of P90,000 that pays
coupons at 6% converted semi-annually and bought at
[15]
a) face value?
b) at a discount worth P 88,000?
c) at a premium worth P 95,000?
PY
2. What is the amount of the semi-annual coupon for a bond with a face value of
P30,000 that pays 6% convertible semi-annually for its coupons?
[5]
C
O
3. How much is the dividend for 5,000 shares of common stock at a par value of
P200
if
the
dividend
percentage
is
5%?
[5]
4. If the declared dividend is P20,000,000 and if there are a total of 100,000 shares
of common stock, how much is the dividend per share?
[5]
5. A realty declared a 5% dividend on a stock with a par value of P3000. Mrs Abad
owns 2000 shares of stock with a par value of P3000. How much is the dividend
she received?
[5]
EP
E
6. A financial institution showed that for a certain trading day, its opening price for its
common stock is P 105 while its closing price is P 98. What is the percent change
on this trading day?
[5]
7. If the annual earnings per share in stocks (dividend) of a certain company is P78
and yesterdays closing price is P95, what is the price-to-earnings ratio?
[5]
8. A loan is to be amortized by paying 5000 annually for 7 years. If interest rate is 6%
annually,
[15]
a) how much is the outstanding balance after 5 payments?
b) how much of the 6th payment goes to pay the interest?
c) how much of the 6th payment goes to pay the principal?
239
Lesson 36: Propositions

Learning Outcome(s): At the end of the lesson, the learner is able to illustrate a
proposition, symbolize propositions, and distinguish between simple and compound
propositions
Lesson Outline:
PY
1. Define proposition. Give examples and non-examples

2. Define simple and compound propositions. Distinguish simple and compound
propositions.
3. Group work.
C
O
Definition: A proposition is a declarative sentence that is either true or false, but

not both. If a proposition is true, then its truth value is true, which is denoted by T;
otherwise, its truth value is false, which is denoted by F.
Propositions are usually denoted by small letters. For example, the proposition
p: Everyone should study logic
may be read as
p is the proposition Everyone should study logic.
If a sequence of propositions is considered, we denote the propositions by
EP
E
Example 1. Determine whether each of the following statements is a proposition or

not. If it is a proposition, give its truth value.
p: Mindanao is an island in the Philippines.
q: Find a number which divides your age.
r: My seatmate will get a perfect score in the logic exam.
s: Welcome to the Philippines!

t:
u:
is a rational function.
v: What is the domain of the function?

w: I am lying.
: It is not the case that
is a rational number.
: Either logic is fun and interesting, or it is boring.

: If you are a Grade 11 student, then you are a Filipino.
240
: If you are more than 60 years old, then you are entitled to a Senior Citizens card,
and if you are entitled to a Senior Citizens card, then you are more than 60 years
old.
Solution. Recall that for a statement to be a proposition, it must be a declarative
sentence, and it should have a truth value of either true or false, but not both true
and false at the same time.
p. This is a declarative sentence, and Mindanao is an island in the Philippines.
Hence p is a proposition.
q. This is an imperative sentence, and so it is not a proposition.
PY
r. The statement is a declarative sentence, but its truth value will only be known after
the logic exam. Nonetheless, it can either be true or false, but not both. Hence r is
a proposition.
s. This statement is exclamatory, and hence it is not a proposition.
C
O
t. The given equation is a mathematical sentence. Translated into English, the

equation reads the sum of three and two is five, which is a declarative sentence.
It is also a true statement. Hence t is a true proposition.
u. This is a declarative statement. Since the numerator of the function is not a

polynomial function, the function f is not rational, so the statement is false. It is
therefore a false proposition.
v. This is an interrogative sentence. Hence it is not a proposition.
EP
E
w. Although w is a declarative sentence, it is not a proposition because it can neither

be true nor false. Suppose w is truethat is, it is the case that I am lying. Since I
am lying, my statement is not true, and so w must be false. The same conclusion
can be drawn if w is assumed to be false.
. While this is a declarative sentence, it can be shown that
cannot be
expressed as a quotient of two integers. Thus,
is a false proposition.
. This is a declarative sentence, which is true, since students may find logic either
fun or boring. Hence
is a true proposition.
. This is a declarative sentence, but it is not true. There are also Grade 11
students of other nationalities.
. We know that it is a true proposition. This is also known as a biconditional
statement, since we can rewrite it as You are more than 60 years old if and only
if you are entitled to a Senior Citizens card.
241
Definition. A compound proposition is a proposition formed from simpler

proposition using logical connectors or some combination of logical
connectors. Some logical connectors involving propositions p and/or q
may be expressed as follows:
not p
p and q
p or q
If p, then q
PY
where <.> stands for some proposition. A proposition is simple if it cannot be broken
down any further into other component propositions.
C
O
Example 2. For each of the propositions in Example 1, determine whether it is a

simple or a compound proposition. If it is a compound proposition, identify the simple
components.
Solution. The propositions p, r, t, and u are all simple propositions. On the other
hand, the following are compound propositions:
. It is not the case that
is a rational number.
. Either logic is fun and interesting, or it is boring.
. If you study hard, then you will get good grades.
EP
E
. If you are more than 60 years old, then you are entitled to a Senior Citizens
card, and if you are entitled to a Senior Citizens card, then you are more than
60 years old.
Furthermore, we can determine the simple propositions that make up the
propositions , , , and . We do so in the following table
Simple Component/s
r:
is a rational number
f: Logic is fun
i: Logic is interesting
b: Logic is boring
h: You study hard
g: You get good grades
a: You are more than 60 years old
s: You are entitled to a Senior Citizens card
The compound propositions can thus be expressed as follows:
; not r
: f and i or b
: if h, then g
: (if a then s) and (if s then a)
Proposition
242
Solved Examples
1. Determine whether the following statements are propositions. If it is a proposition,
determine its truth value if possible.
a: Is the traffic heavy along Katipunan Avenue today?
b: Please close the door.
c:
d: 144 is a perfect square.
f:
PY
e: Keep right while passing through the corridor.

.
g: The year 2016 is a leap year and the equation
has no real solutions.
C
O
h: If a triangle has a right angle, then the triangle is called a right triangle.
i: Either a student takes a mathematics elective next semester, or he takes a

business elective next year.
j: What is 5/10 in simplest form?
Solution.
k: This is a false statement.
a: This is not a proposition since it is a question.
EP
E
b: This is not a proposition since it is an imperative statement.

c: While this is a proposition (in English, it can be read as x plus 2 is equal to 11,
which is declarative), its truth value cannot be ascertained since the value of x is
unknown.
d: This is a true proposition, since it is declarative and we know that
e: This is an imperative statement, and hence it is not a proposition.

f: This is a proposition, since it can be translated as 2 is less than or equal to
negative 1, but it is false.
g: This is a compound proposition, whose simple components are

The year 2016
is a leap year and : The equation
has no real solutions. Since both
and
are both true, then the compound proposition is true. The reason why
the compound proposition is true will be explained in the next lesson.
h: This is the definition of a right triangle, and is hence a true proposition. Observe
also that it is a compound proposition: If a triangle has a right angle, then the
triangle is a called right triangle.
243
i: This is a compound proposition using the logical connector or. Its truth value
cannot be determined since we do not know information about which elective the
student took.
j: This is not a proposition, because it is a question.
k: While this is a declarative statement, it can neither be true nor false. If we suppose
that the statement is false, then it consequently justifies that the statement is true.
Hence, it is not a proposition.
a: You went to the rock concert and your ears hurt.

b: It is not the case that it is Monday today.
c: Either today is a rainy day or today is a sunny day.
PY
2. For each of the following compound propositions, identify the simple components
and the logical connectors used.
C
O
d: If fewer than 10 persons are in attendance, then the meeting will be cancelled.
e: Carlos will not fail the course if his final exam score exceeds 50%.
Solution.
a: For this compound proposition, we have the following simple components: :

You went to the rock concert and : Your ears hurt. The logical connector used
with
and
is and.
: It is Monday today. The compound proposition
EP
E
b: The simple component here is

is formed as b: not .
c: Using the simple components : Today is a rainy day. and : Today is a sunny
day., the compound proposition c is formed with the logical connector or.
d: This compound proposition is of the if-then form; in particular, we have If ,
then , where
:Fewer than 10 persons are in attendance and
: The
meeting will be cancelled.
e: This is also another if-then statement, but it is written in reverse order. The given
statement may also be expressed as If his final exam score exceeds 50%, then
Carlos will not fail the course. Symbolically, we have If , then not , where :
His final exam score exceeds 50% and : Carlos will fail the course.
244

Determine whether the following statements are propositions. If the proposition is a
compound proposition, identify the simple components and the logical connectors
used.
1. Define a polynomial function.
2. Justin Bieber has over one million followers on Twitter and Instagram.
3. If Teds score is less than 50, then Ted will fail the course.
PY
4. What time is it?

5. Either it is sunny in Metro Manila or its streets are flooded.
6. Dinner is served with coffee or tea.
denote the lengths of the legs and the hypotenuse of a right triangle,
.
C
O
7. If , , and
then
8. Timothys average is at least 92 and he is getting an A for the course.

9.
is not a negative number.
10. A password must be at least 6 characters long or it must be at least 8 characters

long.
EP
E
11. If Jerry receives a scholarship, then he will go to college.

12. If you fix my computer, then I will pay you Php 2,000 and if I pay you Php 2,000,
then you will fix my computer.
13. If you do not run 1 kilometer a day or do not eat properly, then you will not be
healthy.
245
Lesson 37: Logical Operators

Learning Outcome(s): At the end of the lesson, the learner is able to perform
different types of operations on propositions.
Lesson Outline:
PY
1. Introduce how to construct a truth table.

2. Define the logical operators: negation, conjunction, disjunction, conditional and
biconditional.
3. Class activity.
Definition: Given a proposition, its truth table show all its possible truth values.
would
C
O
Example 1. Since a proposition has two possible truth values, a proposition

have the following truth table.
T
F
Truth tables can also be used to display various combinations of the truth values of
two propositions and . The rows of the table will correspond to the each truth
value combination of
and , so there will be
rows. The truth table for
propositions and are as follows.
EP
E
T
T
F
F
T
F
T
F
Similarly, suppose , , and are propositions. Then the truth table involving the
given propositions has
rows, as shown below.
In general, a truth table involving
T
T
T
T
T
F
T
F
T
T
F
F
F
T
T
F
T
F
F
F
T
F
F
F
propositions has
rows.
246
Definition. The negation of a proposition
is denoted by
(not )
and is defined through its truth table
T
F
F
T
Example 2. State the negation of the following propositions.
:
is a polynomial function.
PY
: 2 is an odd number.
The tinikling is the most difficult dance.
: Everyone in Visayas speaks Cebuano.
C
O
Solution.
: It is not true that

is a polynomial function or simply
is not a polynomial function.
: It is not true that 2 is an odd number, or 2 is an even number.
: The tinikling is not the most difficult dance.
: Not everyone in Visayas speaks Cebuano.
EP
E
Definition. The conjunction of the propositions
and
is denoted by
( and )
The propositions
and
The conjunction
its truth table.
Example 3. Let
T
T
F
F
T
F
T
F
T
F
F
F
are called conjuncts.
is true only when both conjuncts

and
and
are true, as shown in
be the propositions
Angels exist.
.
247
Express the following conjunctions in English sentences or in symbols, as the case

may be.
1.
2.
3. Angels do not exist and
4. While angels do not exist,
1. Angels exist and
2. Angels exist and
or Angels exist, yet
PY
Solution.
3.
C
O
4.
Definition. The disjunction of two propositions
and
is denoted by
( or )
T
F
T
F
EP
E
T
T
F
F
The propositions
and
T
T
T
F
are called disjuncts.
The above truth table shows us that the disjunction

disjuncts and are false.
be the following propositions:
Example 4. Let , , and
is false only when both
Victor has a date with Liza.
: Janree is sleeping.
: Eumir is eating.
Express the following propositions in English sentences or in symbols, as the case
may be.
1.
2.
3.
248
4. Either Victor has a date with Liza or Janree is sleeping, or Eumir is eating.
5. Either Victor has a date with Liza and Janree is sleeping, or Eumir is eating.
6. Either Victor has a date with Liza, or Janree is sleeping, and Eumir is eating.
7. Either Victor has a date with Liza and Janree is sleeping, or Victor has a date with
Liza and Eumir is eating.
Solution. The corresponding English sentences or symbols are given below.
1. Victor has a date with Liza or Janree is sleeping.
PY
2. Either Janree is sleeping or Eumir is not eating.

3. Either Victor has a date with Liza, or Janree is sleeping, or Eumir is eating.
4.
5.
C
O
6.
7.
It will be shown later that

and
are logically equivalent
statements, so we can write
. Likewise, it will also be shown that
and
are logically equivalent, so we can write
.
EP
E
Example 5. Suppose , , and are the propositions defined above. Consider the
scenario that one Friday night, Victor and Janree are studying for their Logic exam.
Meanwhile, Eumir just tweeted a picture of himself eating crispy pata and sisig. What
is the truth value of the proposition
?
Solution. From the given scenario, it follows that
is a true proposition. Therefore, the conjunction
is false. Hence, the disjunction
disjuncts is true.
and are false proposition, and

is false. Also,
is true since
is true since at least one of its
The above discussion may also be summarized in the following table:

F
Definition. The conditional of the propositions
T
and
is denoted by
: (If , then )
249
T
T
F
F
T
F
T
F
T
F
T
T
The conditional
may also be read as implies . The proposition
the hypothesis, while the proposition is called the conclusion.
is called
Example 6. Suppose that Geebee is a Grade 11 student. Consider the following

conditionals.
PY
: If Geebee is in Grade 11, then she is a senior high school student.

: If Geebee is in Grade 11, then she is working as a lawyer.
: If Geebee has a degree in computer science, then she believes in true love.
Solution.
C
O
Analyze the truth value of these conditionals.
: The hypothesis and the conclusion are true. Thus,

the truth table for the conditional statement).
is true (from the first row of
: While the hypothesis is true, the conclusion is not (a Grade 11 student is not
qualified to be a lawyer). From the definition of the conditional (second row of its
truth table), the conditional statement
is not true.
EP
E
: The hypothesis is not true since Geebee is still in Grade 11. On the other hand,
we cannot determine the truth value of the conclusion she believes in true love.
From the last two rows of the truth table, regardless of the truth value of the
conclusion, the conditional statement is true.
Example 7. One day, Richard tweeted: If I get promoted, then I will stop posting
selfies on Facebook. Let be the statement Richard gets promoted, and let be
the statement, Richard stops posting selfies on Facebook. Determine whether the
conditional
is true given the following scenarios.
Scenario A: Richard got the promotion and promptly stopped posting selfies on
Facebook.
Scenario B: Richard got promoted, but then he realized that posting selfies has
become a habit he cannot break easily.
Scenario C: Richard stopped posting selfies, but he did not get the promotion.
250
Solution.
Scenario A: Both the hypothesis and conclusion are true, so the conditional
true.
Scenario B: In this scenario, the hypothesis
definition, the conditional
is false.
is true and conclusion
is
is false. By
Scenario C: The hypothesis is false, hence regardless of the truth value of the
conclusion, the conditional
is false. In this case, he did not break his promise
since he was not promoted in the first place.
PY
Example 8. Determine the truth values of the following propositions.

, then there are 100 million Filipinos.
(b) If
, then there are only 5 languages in the Philippines.
(c) If
, then it is more fun in the Philippines.
Solution.
C
O
(a) If
(a) The hypothesis and the conclusion are both true. Hence the conditional is true.
(b) The hypothesis is true, but the conclusion is wrong because there are more than
5 languages in the Philippines! In fact there are more than 100 languages in
the country. Thus, the conditional is false.
(c) Because the hypothesis is false, the conditional is true whether it is indeed more
fun in the Philippines or not.
EP
E
Definition. The biconditional of propositions
and
is denoted by
( if and only if )
and is defined through its truth table:

T
T
F
F
T
F
T
F
T
F
F
T
The proposition may also be written as iff . The propositions

components of the biconditional.
and
are the
Example 9. Suppose that Geebee is a Grade 11 student. Let us now consider the
following biconditionals.
: Geebee is in Grade 11 if and only if she is a senior high school student.
: Geebee is in Grade 11 if and only if she is working as a lawyer.
251
: Geebee has a degree in Computer Science if and only if she believes in true
love.
Solution.
: Again, both simple components of
statement is true.
are true. Therefore, the biconditional
: It is true that Geebee is in Grade 11, but it is not true that Geebee is working as a
lawyer. Therefore, the biconditional is not true, referring to the second row of its
truth table.
C
O
Solved Examples
PY
: The first simple proposition, that Geebee has a degree in Computer Science, is
false. The truth value of the entire biconditional depends on the truth value of the
second simple component,that she believes in true love. If this is true, then the
biconditional is false (referring to the third row of the truth table); otherwise, the
biconditional is true.
1. State the negation of the following propositions.

: Mary received a text message from her friend.
.
Eden teaches high-level mathematics to college students.

: James was not able to fetch his sister from school today.
EP
E
e: The student brings at most two bags with him every school day.
Solution.
: Mary did not receive a text message from her friend.

: It is not the case that
(or in symbols:
).
: Eden does not teach high-level mathematics to college students.

: James was able to fetch his sister from school today.
: The student brings more than two bags with him every school day.
2. Let , , and be the propositions : Annie has a stomach ache., : Annie

misses the exam. and : Annie receives a passing grade for the subject. Express
the following in English sentences or in symbols, as the case may be.
a. Annie does not have a stomach ache, yet she misses the exam.
b. If Annie has a stomach ache, then she misses the exam and does not receive a
passing grade for the subject.
252
c. Either Annie has a stomach ache and misses the exam, or she does not miss the
exam and she receives a passing grade for the subject.
d.
e.
f.
Solution.
a.
PY
b.
c.
d. If Annie misses the exam, then she does not receive a passing grade for the
subject.
C
O
e. If Annie has a stomach ache, then she does not receive a passing grade for the
subject, or if she misses the exam, then she does not receive a passing grade for
the subject.
f. Annie does not miss the exam if and only if she receives a passing grade for the
subject.
EP
E
3. Let , , and be the propositions : Bea drives over the speed limit along the
highway., : Bea is pulled over by the traffic enforcer. and : Bea receives a
speeding ticket. Express the following propositions in English sentences or in
symbols, as the case may be.
a. Bea does not drive over the speed limit and does not receive a speeding ticket.
b. Whenever Bea drives over the speed limit, she is pulled over by the traffic
enforcer.
c. Bea receives a speeding ticket only if she drives over the speed limit along the
highway or if she is pulled over by the traffic enforcer.
Note. Propositions of the form only if can be represented symbolically as
This follows from the definition of a biconditional statement.
d.
e.
f.
Solution.
a.
253
b.
c.
d. If Bea is pulled over by the MMDA traffic enforcer, then either she drives over the
speed limit and she receives a speeding ticket, or she does not receive a
speeding ticket.
e. Bea receives a speeding ticket if and only if she drives over the speed limit and
she is pulled over by the MMDA traffic enforcer.
PY
f. If Bea does not drive over the speed limit and she is pulled over by the MMDA
traffic enforcer, then she does not receive a speeding ticket.
4. Suppose
is a true proposition,
is a false proposition, and
proposition. Determine the truth value of the following propositions.
a.
C
O
b.
is a true
c.
d.
e.
Solution.
is false, then
is false. Thus,
EP
E
a. Since
f.
b. At least one of the disjuncts of

Therefore,
is true.
is false.
is true, so the disjunction is true
c. Note that
is true since is false. Therefore,
is true. Since both the
hypothesis and the conclusion in the conditional is true, then the statement
is true.
d. Since
is true, then
is false.
e. Given that is true,

the truth value of
is true. Since
is true,
is false. Therefore,
, which is the hypothesis, is false. Therefore, regardless of

, the conditional
is true.
f. Since and do not have the same truth value,

is false. Likewise,
is true since
and
are both false. Therefore, the disjunction
is true.
5. Determine the truth values of the propositions
statements false.
and
that will make the following
254
a.
b.
Solution.
a. For this conditional to be false,
must be true and must be false. Since
must be false, then
is true, and so the disjunction
is automatically
true. Therefore, the conditional
is false if and only if is false and
has any truth value.
to be false, at least
PY
b. We require that
is false while
is true. For
one of and must be false. We take cases.
Suppose is false. Then for
to be true,
false. Therefore, if and are both false, then
must be true, or must be

is false.
C
O
Suppose is true. Then must be false (for

to be false). If is false, then
is true, and so
is true. Thus, if is true and is false, then
is false.
Therefore, we have two sets of truth values that will make the proposition true:
F
F
F
T
EP
E

1. State the negation of the following propositions.
: Mathematics is easy to study.
: Nellies favorite song is Hero by Mariah Carey.
: Logic is not taken up in junior high school.
: There are at least three people in the meeting room at the moment.
2. Let , , and be the propositions : Rena eats at the Spanish restaurant., :

Rena orders the restaurants special paella., : Rena has dessert. Express the
following statements in English sentences or in symbols, as the case may be.
a. Rena orders the restaurants special paella, but she does not have dessert.
b. Whenever Rena eats at the Spanish restaurant, either she orders the restaurants
special paella or she has dessert.
c. If Rena eats at the Spanish restaurant, she orders the restaurants special paella
if and only if she does not order dessert.
255
d.
e.
f.
3. Consider the propositions : Pam works as a sales associate. : Bryan has a
temporary position in the office. and : Pam and Bryan are co-workers. Express
the following propositions in English sentences or in symbols as the case may be.
a. Pam and Bryan are co-workers, but Pam works as a sales associate and Bryan
does not have a temporary position in the office.
PY
b. Pam and Bryan are co-workers, but if Bryan has a temporary position in the
office, then Pam does not work as a sales associate.
c. Pam and Bryan are co-workers if and only if either Pam works as a sales
associate or Bryan has a temporary position in the office.
C
O
d.
e.
f.
4. Suppose and are true propositions and is a false proposition. Determine the
truth value of the following compound propositions.
b.
c.
d.
e.
f.
EP
E
a.
5. Determine the truth values of

false.
and
that will make the following propositions
a.
b.
256
Lesson 38: Truth Tables

Learning Outcome(s): At the end of the lesson, the learner is able to determine the
possible truth value of a given compound proposition using truth tables and identify
tautologies and contradictions.
Lesson Outline:
PY
1. Constructing truth tables.

2. Define a tautology and contradiction.
3. Class activity.
Example 1. Let and be propositions. Construct the truth table for the compound
proposition
.
C
O
Solution. Note that there are two propositions, and , involved in the compound
proposition. Thus, the truth table will contain 4 rows, the first two columns of which
are
T
F
T
F
T
T
F
F
EP
E
Using the truth table for the definition of the conditional statements
we add two more columns to indicate the truth values of
and
T
F
T
F
T
F
T
T
In the final column, we add the truth value of

conjunction involving
and
as disjuncts.
T
T
F
F
T
F
T
F
T
F
T
T
T
T
F
T
Example 2. Consider the compound proposition

Construct its truth table.
T
T
F
T
T
T
F
F
and
:
, which is a
T
F
F
T
.
257
Solution. There are three primitive propositions involved, and so the truth table for
the compound proposition has 8 rows.
We first consider the truth table pertaining to
entire conditional.
T
F
T
F
T
F
T
F
T
F
T
F
T
T
T
T
Next we consider the conclusion

the truth value of
and
T
F
T
F
T
F
T
F
T
F
T
F
T
T
T
T
T
F
T
T
T
F
T
T
T
F
T
F
T
F
T
T
T
T
T
T
T
T
F
F
T
T
F
F
T
T
F
F
T
F
T
F
T
F
T
T
of the conditional. For this, we require

, which will be appended to the table above.
EP
E
T
T
T
T
F
F
F
F
T
F
T
T
T
F
T
T
PY
T
T
F
F
T
T
F
F
C
O
T
T
T
T
F
F
F
F
, the hypothesis of the
Lastly, we consider the truth value of the proposition
T
T
F
F
T
T
F
F
T
F
T
F
T
F
T
F
T
T
T
T
F
F
F
F
T
F
T
F
T
T
T
T
T
F
T
T
T
F
T
T
T
F
T
F
T
F
T
T
T
F
T
F
T
F
T
T
which we define to be
T
T
T
T
T
T
F
F
Note that regardless of the truth values of , , and , proposition

Such propositions are called tautologies.
T
F
T
F
T
F
T
T
T
T
T
T
T
T
T
T
is always true.
Definition. A proposition that is always true is called a tautology, while a proposition

that is always false is called a contradiction. We denote tautologies by
and contradictions by .
258
Example. Let
a.
and
be propositions. Using truth tables, show the following:
is a tautology.
b.
c.
is
contradiction
is a tautology.
d.
is a contradiction.
Solution.
T
T
T
T
C
O
T
F
PY
a. Note that is always true. Hence in the disjunction

, there is at least one true
disjunct. Therefore,
is a tautology since regardless of the truth value of ,
is true.
b. Since
is always false, then the second column of the truth table we will be
constructing will contain Fs. We have the following truth table
F
F
F
F
EP
E
T
F
Regardless of the truth value of ,
is always false. Hence, it is a contradiction.
c. We have the following truth table

T
F
T
F
T
T
T
F
Regardless of the truth values of

tautology.
and
T
T
F
F
T
T
T
T
,
is always true, so it is a
d. We have the following truth table

T
T
F
F
T
F
T
F
F
T
F
T
F
T
F
F
T
F
F
F
F
F
F
F
259
We note that
and . Therefore,
is false for any combination of truth values of

is a contradiction.
Solved Examples
1. Construct the truth table for the following compound propositions. Assume all
variables denote propositions.
a.
b.
PY
c.
d.
e.
a.
F
T
F
T
F
T
F
T
F
T
F
F
F
T
F
F
F
F
F
F
F
T
F
F
b. Let
EP
E
T
T
T
F
T
T
F
F
T
F
T
F
T
F
F
F
F
T
T
T
F
T
F
T
F
F
T
T
F
F
F
T
denote the proposition
C
O
Solution.
T
F
T
F
F
F
T
T
F
T
F
T
T
T
F
F

T
T
F
F
Hence,
T
F
T
T
T
F
T
F
F
F
F
T
F
F
F
F
is a contradiction.
We note that
c. Let
F
F
T
T
.
F
T
F
T
T
F
T
T
is a tautology.
T
F
T
T
T
T
T
T
260
T
T
F
F
F
F
T
T
T
T
T
F
F
F
T
F
T
T
T
F
T
T
F
T

T
T
T
T
F
F
F
F
T
T
F
F
T
T
F
F
T
F
T
F
T
F
T
F
F
F
F
F
T
T
T
T
T
T
F
F
T
T
T
T
T
T
T
T
T
F
T
F
T
T
F
F
T
F
T
F
PY
e. Let
T
F
T
F
C
O
d. Let
2. Show that the following statements are tautologies by constructing the truth table
for each.
a.
EP
E
b.
c.
d.
Solution.
a. Let
T
T
F
F
T
F
T
F
Hence,
F
T
F
F
T
T
T
T
is a tautology.
b. Let denote the proposition

T
T
F
F
T
F
T
T
T
T
T
T
.
T
F
T
F
T
F
F
F
T
T
F
T
T
T
T
T
261
Hence,
is a tautology.
c.
T
T
F
F
F
T
T
T
T
T
T
T
is a tautology.
T
T
F
F
T
F
T
F
Therefore,
F
F
T
T
F
T
F
T
T
F
F
F
F
T
T
T
F
T
T
T
C
O
d. Let
T
F
F
F
PY
Hence,
T
F
T
F
T
T
T
T
is a tautology.
b.
c.
d.
e.
EP
E
a.
1. Construct the truth table for the following compound propositions. Assume all
variables denote propositions.
2. Show that the following statements are tautologies by constructing the truth table
for each.
a.
b.
c.
d.
e.
262
Lesson 39: Logical Equivalence and Conditional

Propositions
Learning Outcome(s): At the end of the lesson, the learner is able to identify
logically equivalent propositions, and illustrate different forms of conditional
propositions.
Lesson Outline:
PY
1. Define a logical equivalence.

2. Define different forms of conditional proposition.
3. Seatwork.
C
O
Definition. Two propositions and are logically equivalent, denoted by

, if
they have the same truth values for all possible truth values of their simple
components.
Logical equivalence can also be expressed in terms of a biconditional statement.
Two propositions and are logically equivalent if the proposition
is always
true (or is a tautology).
. We shall call this logical equivalence

the Switcheroo law19.
EP
E
Solution. We need to show that

using a truth table.
T
T
F
F
T
F
T
F
and
T
F
T
T
have the same truth values
F
F
T
T
T
F
T
T
Notice that the third and fifth columns of the truth table above contains the same
truth values in the same sequence. Thus
19
Waner, C. & Costenoble, S.R. (2001). Supplementary chapters to accompany Finite Mathematics,
2nd ed. Brooks/Cole. (http://www.zweigmedia.com/RealWorld/logic/logicintro.html)
263
The table below shows the different logical equivalences that are used when
manipulating compound propositions.
Theorem (Table of Logical Equivalences). Let , , and be propositions. We
have the following logical equivalences
C
O
PY
Identity Laws
Domination Laws
Idempotent Laws
Inverse Laws
Double Negation
Associative Laws
Commutative Laws
Distributive Laws
De Morgans Laws
Absorption Laws
Note: In the previous lecture, it was shown that
Therefore, we can say that
using logical equivalences.
has the same truth table as
EP
E
Solution. One way to do this is to construct a truth table for each logical expression
then show that they have the same truth values. Another method is to use the logical
equivalences to transform
into
.
Example 3. Let and

following conditionals:
Reason
Given
Switcheroo
De Morgans Law
Double Negation
be propositions. Construct the truth tables for each of the

,
,
,
.
Solution. We construct a single truth table containing each of the conditionals:

T
T
F
F
T
F
T
F
F
F
T
T
F
T
F
T
T
F
T
T
T
T
F
T
T
T
F
T
T
F
T
T
264
Note that the fifth and eighth columns are the same, so we have shown that
. Likewise, since the sixth and seventh columns are identical, it
follows that
.
The conditionals that we considered in the previous example are the different forms
of conditional propositions.
Definition. Suppose
and
are propositions. From the conditional proposition
, we derive three other conditional statements, namely its
using logical equivalences in the
C
O
We can also show that

following manner.
PY
a. Converse:
b. Contrapositive:
c. Inverse:
Note that a conditional and the corresponding contrapositive are logically equivalent.
Likewise for a given conditional statement, its converse and inverse are logically
equivalent.
Switcheroo
Commutative Law
Double Negation
Switcheroo
EP
E
Reason
Likewise, we can also show that

equivalences:
by means of logical
Reason
Switcheroo
Commutative Law
Double Negation
Switcheroo
Example 4. Consider the following true conditional

: If Geebee is in Grade 11, then she is a senior high school student.
State its (a) converse, (b) contrapositive, and (c) inverse and determine whether
each statement is also true.
Solution.
a. Converse (
): If Geebee is a senior high school student, then she is in Grade
11. This is not necessarily true.
265
b. Contrapositive (
): If Geebee is not a senior high school student,
then she is not in Grade 11. This is true.
c. Inverse (
): If Geebee is not in Grade 11, then she is not a senior
high school student. This is not necessarily true.
Example 5. Let
be the political slogan: If there are no corrupt people, then
there are no poor people. State the converse, contrapositive, and the inverse of
.
Solution.
): If there are no poor people, then there are no corrupt people.
Inverse (
PY
): If there are poor people, then there are corrupt

people.
Contrapositive (
): If there are corrupt people, then there are poor people.
Solved Examples
C
O
Converse (
1. Determine the converse, contrapositive and the inverse of the following conditional
propositions.
a. If it is consumed in large volumes, then chocolate can be harmful to ones health.
b. Whenever she will be given the chance to perform on stage, Whitney will sing all
her classic songs.
EP
E
c. If Sheila will decide to enter through the front door, then she will be greeted by a
large group of press people.
d. Dana studied for the exam alone if her boyfriend decided to go home early to
sleep.
e. If at least one student slept in class, then Lyn gave a difficult quiz to wake the
students.
Solution.
a. Note that the given proposition is of the form

, where : It (chocolate) is
consumed in large volumes and : Chocolate can be harmful to ones health.
Converse
Contrapositive
Inverse
If chocolate can be harmful to ones health, then it is

consumed in large volumes.
If chocolate cannot be harmful to ones health, then it is not
consumed in large quantities.
If it is not consumed in large volumes, then chocolate cannot
be harmful to ones health.
266
b. We can write the given proposition as, If she will be given the chance to perform
on stage, then Whitney will sing her classic songs. It is now of the form
,
where : She will be given the chance to perform on stage. and : Whitney will
sing her classic songs.
Converse
If Whitney will sing her classic songs, then she will be given
the chance to perform on stage.
Contrapositive
If Whitney will not sing her classic songs, then she will not be
given the chance to perform on stage.
Inverse
If she will not be given the chance to perform on stage, then

Whitney will not sing her classic songs.
PY
c. The given conditional is of the form

, where : Sheila will decide to enter
through the front door and : she will be greeted by a large group of press
people.
If she will be greeted by a large group of press people, then
Sheila will decide to enter through the front door.
Contrapositive
If she will not be greeted by a large group of press people,

then Sheila will not decide to enter through the front door.
Inverse
If Sheila will not decide to enter through the front door, then
she will not be greeted by a large group of press people.
C
O
Converse
EP
E
d. Note that we can write the given conditional as If her boyfriend decided to go
home early to sleep, then Dana studied for the exam alone, which is now of the
form
, where : Her boyfriend decided to go home early. and : Dana
studied for the exam alone.
Converse
Contrapositive
Inverse
If Dana studied for the exam alone, then her

boyfriend decided to go home early to sleep.
If Dana did not study for the exam alone, then
her boyfriend did not decide to go home early
to sleep.
If her boyfriend did not decide to go home
early to sleep, then Dana did not study for the
exam alone.
e. The given proposition is of the form

, where : At least one student slept in
class and : Lyn gave a difficult quiz to wake the students.
Converse
If Lyn gave a difficult quiz to wake the students, then at least

one student slept in the class.
Contrapositive
If Lyn did not give a difficult quiz to wake the students, then
no student slept in the class.
Inverse
If no student slept in the class, then Lyn did not give a difficult
quiz to wake the students.
267
2. Verify the following logical equivalences using (a) the known logical equivalences,
and (b) truth tables.
a.
b.
c.
d.
PY
Solution. We will verify these logical equivalences using the known logical
equivalences. The construction of truth tables to prove the equivalence will be left to
the student as an exercise.
a. We can start with the right-hand side of the equivalence.
C
O
Reason
Given
De Morgans Law
Double Negation
EP
E
b.
Reason
Given
Switcheroo
Double Negation
Switcheroo
Associative Law and
Commutative Law
Switcheroo
c. For this exercise, we will use the fact that conditionals are logically equivalent to
their respective contrapositives.
Reason
Given
Logical equivalence for
biconditionals
Conditionals are logically
equivalent to their contrapositives
Commutative Law
Logical equivalence for
biconditionals
268
d.
Reason
Given
De Morgans Law
Distributive Law
Distributive Law
PY
Idempotent Law and

Inverse Law
Identity Law
Absorption Law
Absorption Law
C
O
1. Determine the converse, contrapositive, and inverse of the following conditional

propositions.
a. If the clothes are neatly stacked and pressed, then the house help arrived today.
b. If it did not flood yesterday, then the streets are dry today.
c. Whenever Nico studied alone, he got the highest score in the class.
EP
E
d. Her parents gave her monetary allowance if Bianca accompanied her parents to
the PTA meeting.
e. If Mariah hit the high whistle note, then the audience gave her a standing
ovation.
2. Verify the following logical equivalences using (a) the known logical equivalences
and (b) truth tables.
a.
b.
c.
d.
269
Lesson 40: Valid Arguments and Fallacies

different types of valid arguments and fallacies, and establish the validity of
arguments.
Lesson Outline:
1. Introduction.
2. Define argument.
PY
3. Define valid argument.

4. Define fallacy.
5. Define sound argument.
C
O
Definition. An argument is a compound proposition of the form
EP
E
The propositions
are the premises of the argument, and
is the
conclusion. Arguments can be written in propositional form, as in above, or in
column or standard form:
Example 1. Explain why the following set of propositions is an argument.
If General Antonio Luna is a national hero, then he died at the hands of the
Americans in 1899.
General Luna is a national hero.
Therefore, General Luna died at the hands of the Americans in 1899.
Solution. The set of propositions is an argument. The first two propositions are the
premises of the argument, while the last proposition, marked by the word therefore,
is the conclusion of the argument.
Example 2. Write the following argument in propositional form and in standard form:
If there is a limited freshwater supply, then we should conserve water.
There is a limited freshwater supply.
270
Therefore, we should conserve water.

Solution. The premises of this argument are
: If there is a limited freshwater supply, then we should conserve water.
: There is a limited freshwater supply.
The conclusion is
: We should conserve water.
and
given below
C
O
Example 3. Consider the arguments
and
PY
In symbols, we can write the whole argument in propositional form

in standard form
If my alarm sounds, then I

will wake up.
My alarm sounded.
If my alarm sounds, then I

will wake up.
I woke up.
Therefore, my alarm
sounded.
Therefore, I woke up.
We can analyze the arguments separately by looking at its validity.
EP
E
Definition. An argument is valid if it satisfies the validity condition:

Is it logically impossible for the premises to be true and the conclusion false?
If the answer is affirmative, we say that the argument satisfies the validity condition,
and is hence valid.
Solution. For argument , we ask: can

answer this, we look at the truth table for
T
T
F
F
and
:
T
F
T
F
The highlighted row shows that both and

Based on the truth table, it is not possible for
false. Hence, argument is valid.
be both true and
be false? To
T
F
T
T
are true if and only if is true.
and
to be true and to be
271
For argument , we ask: can

the same truth table,
and
T
T
F
F
be both true and
T
F
T
F
be false? Looking at
T
F
T
T
PY
the highlighted row shows that it is possible for

and be both true and be
false. Hence, argument
does not satisfy the validity condition and so it is not a
valid argument.
is a tautology.
C
O
Definition. A valid argument satisfies the validity condition; that is, the conclusion
is true whenever the premises
are all true. Alternatively, the argument is
valid if the conditional
Example 4. Prove that the argument

known as Modus Ponens (or Rule of Detachment).
Since
T
F
T
F
T
F
T
T
EP
E
T
T
F
F
is a tautology. We can do this
Solution. We only need to show that

by constructing a truth table.
is valid. This argument is
T
F
F
T
T
T
T
T
is a tautology, then the argument is valid.
Example 5. Consider the arguments in the previous examples:

Argument A
If my alarm sounds, then I will wake up.

My alarm sounded.
Therefore, I woke up.
Argument B
If there is a limited freshwater supply, then we should conserve water.
There is a limited freshwater supply.
272
Therefore, we should conserve water.

Argument C
If General Antonio Luna is a national hero, then he died at the hands of the
Americans in 1899.
General Luna is a national hero.
Therefore, General Luna died at the hands of the Americans in 1899.
, or in standard form
PY
Note that they are all of the form
C
O
Hence, by Modus Ponens, all three arguments are valid. However, this does not
mean that the conclusions are true. Asserting that an argument is valid simply
means that the conclusion logically follows from the premises.
Theorem (Rules of Inference). Let , , and
be propositions.
Propositional Form
Rule of Addition
Rule of Simplification
Standard Form
EP
E
Rule of Conjunction
Modus Ponens
Modus Tollens
Law of Syllogism
Rule of Disjunctive
Syllogism
Rule of Contradiction
Rule of Proof by Cases
273
Example 6. Determine whether the following argument is valid:

If Antonio and Jose are friends, then they are Facebook friends.
Antonio and Jose are not Facebook friends.
Therefore, they are not friends.
This is valid by Modus Tollens.
PY
Solution. Let : Antonio and Jose are friends. and : Antonio and Jose are
Facebook friends. Then the given argument is of the form
Example 7. Determine which rule is the basis of each argument below.
C
O
a. Antonio Luna and Jose Rizal like Nelly Boustead.

Therefore, Antonio Luna likes Nelly Bousted.
b. Antonio Luna is a scientist.
Therefore, either Antonio Luna or Jose Rizal is a scientist.
c. If the Spaniards imprison Antonio Luna, then he will repent and not join the
revolution.
EP
E
If Antonio Luna regrets not joining the revolution, then he will go to Belgium to
study the art of war.
Therefore, if the Spaniards imprison Antonio Luna, then he will go to Belgium to
study the art of war.
Solution.
: Jose Rizal likes Nelly
a. Let : Antonio Luna likes Nelly Boustead. and

Boustead. The given argument is of the form
By the Rule of Simplification, the argument is valid.

b. Let : Antonio Luna is a scientist. and : Jose Rizal is a scientist. The argument
is of the form
By the Rule of Addition, the argument is valid.

274
c. Let : The Spaniards imprison Antonio Luna., : Antonio Luna regrets not
joining the revolution, and : Antonio Luna goes to Belgium to study the art of
war.The argument is of the form
The argument is valid, by the Law of Syllogism.

which is not valid is called a fallacy.
to be true, while the conclusion
is not a tautology.
Solution. We show that
is a fallacy by means of a truth table.
T
F
T
F
T
F
T
T
T
F
F
T
T
T
F
T
T
T
F
F
is a fallacy. This is known as
C
O
Example 8. Prove that the argument

the Fallacy of the Converse.
PY
Definition. An argument
In a fallacy, it is possible for the premises
is false. In this case, the conditional
is not a tautology, the argument is invalid and is hence a
EP
E
Since
fallacy.
Note that it is sufficient to find truth values of and that will make the premises
simultaneously true but the conclusion false. We call such set of values a
counterexample. In this case, the counterexample is the case when is false and
is true (see the third row of the truth table above).
Example 9. Show that the following arguments are fallacies.

:
If my alarm sounds, then I will wake up.

I woke up.
Therefore, my alarm sounded.
If there is a limited supply of freshwater, then I will conserve water.

I will conserve water.
Therefore, there is limited supply of freshwater.
275
Solution. Each of the arguments has the form
Similar to the previous example, each argument is a fallacy of the converse.

The following table lists some of the common fallacies in logic.
Propositional Form
Standard Form
PY
Fallacy of the Converse
Fallacy of the Inverse
C
O
Affirming the Disjunct

Fallacy of the
Consequent
Denying a Conjunct
EP
E
Improper Transposition
Example 10. Determine whether the given is a valid argument or a fallacy.

a.
Either Alvin sings or dances with Nina.

Alvin sang with Nina.
Therefore, Alvin did not dance with Nina.

Either Alvin sings or dances with Nina.
b.
Alvin did not dance with Nina.

Therefore, Alvin sang with Nina.
c.
It is not true that Alvin sings and dances with Nina.

Alvin did not sing with Nina.
Therefore, Alvin danced with Nina.
276
Solution. Let : Alvin sings with Nina. and : Alvin dances with Nina.
a. The given argument is of the form
This is the fallacy of Affirming the Disjunct.

Alternate Solution: We can prove that the argument is not valid by finding a
that make the propositional form of the

and are false, as the following table
PY
counterexample (i.e., truth values for and

tautology false). This happens when both
shows.
C
O
b. The given argument is of the form
, by the Commutative Law, and so we can
EP
E
The first premise can be written as

write
Which adheres to the Rule of Disjunctive Syllogism, the argument is valid.
c. In symbols, the argument is of the form
This is the fallacy of Denying a Conjunct.
Alternate Solution: We can find a counterexample to show that the argument is not
valid. If both and are false, then the propositional form of the argument is false.
F
277
ENRICHMENT: Valid and Sound Arguments

Definition. An argument is said to satisfy the truth condition if its premises are
generally true.20
Definition. A sound argument is a valid argument which also satisfies the truth
condition. An argument which does not satisfy either the validity condition or the truth
condition is called a bad argument.21
Example 11. The following arguments were already shown to be valid.
a. Antonio Luna and Jose Rizal like Nelly Boustead.
b.
PY
Therefore, Antonio Luna likes Nelly Boustead.

Antonio Luna is a scientist.
Therefore, either Antonio Luna or Jose Rizal is a scientist.
C
O
A simple history verification will show that the premises of both arguments are true.
Nelly Boustead was the object of affection of Antonio Luna and Jose Rizal while they
were in Spain.
Moreover, Luna is known as a brilliant general, but he is also a scientist. He studied
Chemistry at the University of Santo Tomas, and went to Spain where he obtained
his license and doctorate in pharmacy.
Hence, these arguments satisfy both truth and validity conditions, so they are sound
arguments.
EP
E
Example 12. Determine whether each of the following arguments is valid, and if
each is sound.
a. If I was born poor, then I cannot serve my country.
I was born poor.
Therefore, I cannot serve my country.
b. If I study every day, then I will develop a good work ethic.
I study every day
Therefore, I will develop a good work ethic.
Solution. By Modus Ponens, both arguments are valid. We then check for
soundness through the truth condition.
a. Note that being poor does not prevent one from serving ones country (you can
probably think of some examples). Hence, the given argument is a bad argument.
b. It is accepted as true that if one studies every day, then a good work ethic will be
developed. However, it cannot be assumed true that I study every day. If it is true,
then the argument is sound. Otherwise, the argument is bad.
20
deLaplante, K. (2013). What is a good argument? The truth condition

(https://www.youtube.com/watch?v=9mk8RWTsFFw).
21
Ibid.
278
Solved Examples
1. Determine whether the following arguments are valid. If it is valid, then identify the
rule of inference which justifies its validity. Otherwise, state a counterexample or
identify the type of fallacy exhibited by the argument.
a. If it rains today, then
. It rained today. Therefore,
b. Either Lina or Lino will take the trash to the recycling center. Lina did not take the
trash to the recycling center. Hence, Lino must have taken the trash to the
recycling center.
PY
c. If Joe makes a reviewer for his class and studies it well, then he will get a high
grade in his exam. Joe did not get a high grade in his exam. Therefore, either Joe
did not make a reviewer for his class or he did not study it well.
d. If is a polynomial function, then it is also a rational function. Therefore, if
rational function, it is also a polynomial function.
, then
. It holds that
. Therefore,
C
O
e. If
is a
f. It is not the case that is an odd number and is a prime number. Furthermore,
is not an odd number. Therefore, is a prime number.
g. If Leona wins the singing competition, then she will land a recording contract with
a famous company. She landed a recording contract with a famous company. It
follows that Leona won the singing competition.
EP
E
h. If Michael sleeps early tonight, then he will wake up early tomorrow. If he does not
play with his pet dog, then he will wake up early tomorrow. Therefore if Michael
sleeps early tonight or does not play with his pet dog, then he will wake up early
tomorrow.
Solution.
. In proposition form, the argument

. Hence, the argument is valid by virtue of
a. Let
It rains today and
assumes the form
Modus Ponens.
b. Let : Lina will take the trash to the recycling center. and : Lino will take the
trash to the recycling center. In propositional form, the argument is
. Thus, the argument is valid by the Rule of Disjunctive Syllogism.
c. Let : Joe makes a reviewer for his class., : Joe studies the reviewer well.,
and
: Joe will get a high grade in the exam.
In proposition form, the argument is
that the conclusion can also be written in the form
. Note
, and so the argument is
This is valid by Modus Tollens.

279
d. Let : is a polynomial function and :

form, the argument is
is a rational function. In standard
This is the Fallacy of the Consequent.

e. Let :
and :
. Then the argument is of the form
PY
This is the Fallacy of the Inverse.
C
O
f. Let : is an odd number, and : is a prime number. The argument is of the

form
This exhibits the fallacy of Denying a Conjunct.
EP
E
g. Let : Leona wins the singing competition. and : Leona lands a recording
contract with a famous company. The argument takes the form
This is invalid as this is an example of the Fallacy of the converse.
h. Let : Michael sleeps early tonight., : Michael plays with his pet dog., and :
Michael will wake up early tomorrow. The argument is of the form
This is valid due to the Rule of Proof by Cases.

2. Determine whether each of the following arguments is (a) valid and (b) sound.
a. If triangle
and
are congruent, then they are similar. Triangles
congruent. Therefore, triangles and are similar.
and
are
b. The set of natural numbers is finite or the set of negative integers is finite. It is
known that the set of negative integers is infinite. Therefore, the set of natural
numbers is finite.
280
c. Quadrilateral
is a square or a parallelogram. It is known that
parallelogram. Therefore, it is not a square.
d. If
e. If
, then
. We know that
is a real number with
, then
is a
Therefore,
. Suppose
. Then
f. If 9 is less than 4, then 9 is not a prime number. 9 is a prime number. Therefore, 9

is not less than 4.
PY
Solution.
a. The argument is valid by Modus Ponens. Furthermore, we know from the
geometry of triangles that congruent triangles are also similar (but similar triangles
are not necessarily congruent). If it is taken to be true that
and
are congruent,
then the argument satisfies the truth condition. Hence, the argument is sound.
C
O
b. The argument is valid by Disjunctive Syllogism. However, it is not sound because

there are infinitely many natural numbers and negative integers, and this points to
the falsity of the first premise.
c. The argument is invalid as it exhibits the fallacy of Affirming the Disjunct, and
hence it is unsound.
d. The argument is valid by Modus Ponens. But the premise
is not true, so
the argument is not sound.
EP
E
e. The argument is valid by Modus Tollens. The first premise is true by the
monotonicity of the function
. If the second premise is taken to be true,
then the argument is sound.
f. The argument is valid by Modus Tollens, but the second premise not true; 9 has
factors other than 1 and itself. Hence, the argument is not sound.

1. Determine whether the following arguments are valid. If it is valid, then identify the
rule of inference which justifies its validity. Otherwise, state a counterexample or
identify the type of fallacy exhibited by the argument.
a. If
is an odd integer, then
is also an odd integer. If
is an odd
integer, then
is an odd integer. Therefore if is an odd integer, then
is an odd integer.
b. If is even and is odd, then
is even and is odd.
is even. It is found that
is even. Therefore,
281
c. If quadrilateral
is a square, then it is also a rectangle. Quadrilateral
not a rectangle. Therefore, it is not a square.
is
d. If Delight publishes a dissertation with original results, then she will earn a Ph.D.
She did not publish a dissertation with original results. Therefore, she did not earn
a Ph.D.
e. If Jason has a Ph.D. and has done a considerable amount of research, then he is
qualified for the research professor position. He was informed that he is qualified
for the research professor position. Therefore, Jason has a Ph.D. and has done a
considerable amount of research.
PY
f. If the housing market crashes, then all of my investments will suffer. My

investments have not suffered. Therefore, the housing market has not crashed.
C
O
g. Either Derrick was not informed about the meeting or he made the decision not to
attend. Derrick was not informed about the meeting. Thus, he did not decide not to
attend the meeting.
h. It is known that
is a polynomial function and it is a one-to-one function.
Therefore,
is a one-to-one function.
2. Determine whether each of the following arguments is (a) valid and (b) sound.
a. If
is a real number with
, then
. Suppose
. Then
.
is a positive
is a rational number, then

for some integers and . It is not true
for some integers and . Therefore,
is not a rational number.
EP
E
c. If
that
. Suppose
b. If
is a positive number, then
number.
. Then
d. If the polygon is a quadrilateral, then the sum of its interior angles is

. The
sum of the interior angles of the polygon is not
. Therefore, the polygon is not
a quadrilateral.
e. If at least one of two numbers is divisible by 5, then the product of the two
numbers is divisible by 5. Neither of the two numbers is divisible by 5. Therefore,
the
product
of
these
two
numbers
is
not
divisible
by
6.
282
Lesson 41: Methods of Proof

different methods of proof.
Lesson Outline:
Introduction.
Proof and proving validity of arguments in propositional form.
Proof and proving validity of arguments in real-life situations.
Disproof.
Indirect proofs.
Proof and proving validity of arguments in mathematics.
PY
1.
2.
3.
4.
5.
6.
C
O
Basic Idea of Proofs. The goal of the proof is to show that the conclusion logically
follows from the given propositions (or premises).
As for the content of the proof, each proposition must be a valid assertion: they must
be based on a given statement (i.e. a premise), or they must follow from the premise
via logical equivalences or rules of inferences.
Example 1. Prove the validity of the following argument:
EP
E
Solution. Thinking process: We assume that all propositions over the line are true.
From these two propositions, the goal is to establish a logical sequence of
propositions to arrive at the conclusion
.
A common strategy is to start with the statement not involving a conditional (i.e., start
with ). Now think, if
is true, how can we reach
?
To do that, we can use Modus Tollens on

, but first we need to establish
that
is true. Since
is true, then by the Rule of Addition,
is
true. It follows that
, by De Morgans Law.
The actual proof is written as follows:
Proposition
Reason
Premise
(1), Rule of Addition
(2), De Morgans Law
Premise
(3), (4), Modus Tollens
1
2
3
4
5
283
Example 2. Prove the validity of the argument
Solution. Observe that the Law of Syllogism can be applied to the first two premises:
that is,
and
imply that
. This is a new
proposition that we can assume to be true.
Also, since
written below.
is true, then
is true by Modus Tollens. The actual proof is

Reason
Premise
Premise
(1), (2), Law of Syllogism
Premise
C
O
PY
Proposition
1
2
3
4
5
An alternative proof goes without starting from the conditional premise.

Reason
Premise
Premise
Premise
EP
E
Proposition
1
2
3
4
5
Example 3. Prove the validity of the following argument.
Solution. We can start with the simple proposition . Then

must be false since
is taken to be true. By Disjunctive Syllogism
, it follows that
is true.
Applying Disjunctive Syllogism again with
, it follows then that is true.
The actual proof is written below.
Proposition
1
2
3
4
5
6
Reason
Premise
Double Negation
Premise
(2), (3), Disjunctive Syllogism
Premise
284
PY
Alternatively, it is also valid to transform the premises

and
to
and
, respectively, using the Switcheroo Law. Then we can use
Modus Tollens and the Law of Syllogism, as shown below:
Proposition
Reason
1
Premise
2
Switcheroo
3
Premise
4
Switcheroo
5
Law of Syllogism
6
Premise
7
(6), Double Negation
8
9
Double Negation
C
O
Example 4. Analyze the validity of the following argument:

If you start your own business, then you will earn right away.
If you go to college, then you will get a college degree after a few years.
However, you either start your own business, or you go to college.
Therefore, either you earn right away, or get a college degree after a few years.
EP
E
Solution. We transform the given argument in symbols. Define the propositions :

You start your own business., : You earn right away., : You go to college., and
: You get a college degree after a few years.
In standard form, the argument is
This is a valid argument, as shown in the following proof:

Proposition
Reason
1
Premise
2
Double Negation
3
Switcheroo
4
Premise
5
Premise
(4), The contrapositive is
logically equivalent to the
original conditional
7
8
9
10
Switcheroo
Double Negation
285
Note: We have shown in the previous example that an argument of the form
is valid. This form is called the constructed dilemma.
PY
Example 5. Show that the following argument is invalid: I would like a career in
either teaching or diplomacy. If I teach, then I would want to study abroad. Therefore,
if I would like a career in diplomacy, then I will study abroad.
Solution. We first write the argument in symbolic form using the following
propositions:
: I would like a career in diplomacy.

: I would want to study abroad.
C
O
: I would like a career in teaching.
Thus, the argument can be written in standard form as
EP
E
To show that an argument is not valid, we need to find truth values for each
proposition such that the premises are true, but the conclusion is false.
For
to be false, then must be true and must be false. If is false, then
is true and
are both true. Since there is such a combination of truth values for
, , and that makes the conclusion false but the premises true, the argument is
invalid.
This is an example illustrating that producing a counterexample is sufficient to
show that an argument is invalid.
Another method is through the use of an indirect proof or a proof by

contradiction. In these proofs, we show that the assumption that the premises
are true but the conclusion is false leads to a contradiction.
Example 6. Prove the following argument using three methods: (a) via the rules of
inference, (b) via truth tables, and (c) via an indirect proof.
286
Solution.
Via rules of inference
Proposition
1
2
3
Via truth tables
T
T
F
F
T
F
T
F
T
T
T
F
Since
c.
F
T
F
T
F
T
F
F
T
T
T
T
is a tautology, the argument is valid.

Via indirect proof
C
O
b.
Reason
Premise
Premise
PY
a.
We assume the conclusion is false, while the premises are true, and show that these
lead to a contradiction.
Suppose (the conclusion) is false. Based on the premise,

is true, and so
false. Therefore,
is false, which is a contradiction of the premise that
true.
is
is
EP
E
Therefore, the conclusion must be true.
We now apply the rules of logic to prove basic results in mathematics. Before we
proceed, we state the following important idea:
Definitions in mathematics are always if and only if statements.
Consider the following examples.
Definition
An even number is a number than
can be written as
, where is an
integer
A binomial is a polynomial with exactly
2 terms.
A parallelogram is a quadrilateral with
two pairs of parallel sides.
If and only if Form

A number is even if and only if it can
be written as
, where is an
integer.
A polynomial is a binomial if and only if
it has exactly 2 terms.
A quadrilateral is a parallelogram if and
only if it has two pairs of parallel sides.
287
Example 7. Prove the validity of the following argument.

An even number
is a number than can be written as
integer. The numbers and are even. Therefore,
is even.
, where
is an
Solution. Since is even, then the first premise ensures that can be written as
, where
is an integer. Similarly, since is even, then we can write
,
where
is an integer.
:
Since
is an integer, then
Ponens is applied to the first premise.
is even. This is the conclusion when Modus
Example 8. Prove that the following argument is valid.
PY
We compute for
C
O
If a quadrilateral has three right angles, then it is a rectangle. In quadrilateral

,
, and
. Then,
is not a rectangle.
Solution.
Thinking process: The only way for

to be a rectangle is if
there would be three triangles. We will prove that this is not the case.
, so that
. Therefore,
EP
E
Proof: The sum of the interior angles in a rectangle is
Substituting the values given, we have

, which
simplifies to
. Therefore,
has only two right angles. This also
means that
is not a rectangle (using Modus Tollens on the definition stated in
the first premise).
Indirect Proof: Assume that

is a rectangle. Then it has three right angles. But
since
is not a right angle, then the three right angles must be
,
, and
.
Solving for
,
that
in the equation
, and
), we find that
, which is the given. Therefore,
(given
. This contradicts the fact
is not a rectangle.
Solved Examples
Determine whether the following arguments are valid using rules of inference. If the
argument is invalid, provide a counterexample.
1. An odd integer is a number that can be written in the form
is an integer. It is known that and are odd integers. Therefore,
, where
is even.
288
2. Mary is studying computing or Mary is not studying math. If Mary is studying math,
then Mary is not studying computing. Therefore, Mary is studying computing.
is an integer. We know that is odd. Therefore,
is odd.
, where
4. If the machine is cheap or is energy efficient, then it will not make money for the
manufacturer. If the machine is painted red, then it will make money for the
manufacturer. The machine is cheap. Therefore, it is not painted red.
PY
5. If monsters roam the Earth, then all people will buy weapons. If Earth experiences
tremors from beneath the surface, then all people will evacuate. Monsters roam the
Earth and people are evacuating. Therefore, all people bought weapons, and the
Earth experienced tremors from beneath the surface. (Invalid: A true, B true, C
false, D true)
EP
E
8.
7.
C
O
6. If Cherrys song is loud or tedious, then it is not long and not cacophonous.
Cherrys song is tedious. Therefore, Cherrys song is not long.
9.
10.
289
Solution.
1. The first premise is a definition, and can thus be interpreted as an if-and-only-if
statement. Suppose
and
are odd. Then we can write
and
for some integers
and . Thus,
is an integer, then by Modus Ponens on the definition of even

is even.
2. Let : Mary is studying computing. and
: Mary is studying math.
In propositional form, the argument is

be checked with a truth table
T
F
T
F
F
F
T
T
F
T
F
T
T
T
F
T
The argument is not valid since

are both false.
is not a tautology. A counterexample is when
is odd. Then we can write
T
T
T
F
and
for some integer . Furthermore,
is also an integer. Then by Modus Ponens,
EP
E
Since is an integer, then

also odd.
F
T
F
T
3. Suppose
F
T
T
T
C
O
T
T
F
F
. Validity can
PY
Since
numbers,
is
4. Let : The machine is cheap., : The machine is energy efficient., : The

machine will make money for the manufacturer., and : The machine is painted
red. In standard form, the argument is
Proof:
Proposition
1
2
3
4
5
6
7
Reason
Premise
(1), Equivalence to contrapositive
Premise
(3), Addition Law
Premise
(4), (6), Modus Ponens
290
5. Suppose : Monsters roam the Earth., : All people will buy weapons., :
Earth experiences tremors from beneath the surface., and : All people will
evacuate. Constructing a truth table shows that the case , , and are true and
is false is a counterexample. The argument is invalid.
6. Let : Cherrys song is loud., : Cherrys song is tedious., : Cherrys song is
long., and : Cherrys song is not cacophonous. The argument, in standard form
is
PY
Proof:
7.
Reason
Premise
(1), Switcheroo
Premise
(3), Double Negation, Commutative Law
(4), Switcheroo
(6), Switcheroo, Double Negation
EP
E
Proposition
1
2
3
4
5
6
7
Reason
Premise
Addition Law
Premise
Simplification Law
C
O
Proposition
1
2
3
4
5
8.
Proposition
1
2
3
4
5
6
7
8
9
10
11
Reason
Premise
Premise
Premise
(3), Simplification
(3), Simplification
(6), (7), Law of Conjunction
(8), Inverse Law
(9), Addition Law
(10), Identity Law
291
9.
Reason
Premise
Premise
Premise
Premise
(3), (4), (5), Constructed Dilemma
(6), Inverse Law
(7), Addition Law
(8), Identity Law
PY
Proposition
1
2
3
4
5
6
7
8
9
10. This is invalid. A counterexample is when all propositions involved are false.
Prove each of the following statements.
is even and
2. Suppose
3. If
and
is odd, then
is odd, then
is odd.
C
O
1. If
are divisible by 3. Then

is odd.
Solution.
is also divisible by 3.
and
, we can write
EP
E
1. Suppose is even and is odd. Then for some integers

and
. Therefore,
Since
number).
is also an integer, then
2. Suppose
write
and are divisible by 3. Then for some integers

and
. Therefore,
is an integer, then
Since
is odd (as it has the form of an odd

and
, we can
3. (By contradiction) Suppose the conclusion is odd is false; that is, suppose
even. Therefore, we can write
for some integer . This means that
We note that
premise that
is also an integer, implying that

is odd. Therefore, must be odd.
is
is even. This contradicts the
292

A. Determine whether the following arguments are valid using rules of inference. If
the argument is invalid, provide a counterexample.
is an integer. It is known that and are odd integers. Therefore,
, where
is odd.
2. Noel is not cooking or Noel is watching a television show. If Noel is not watching a
television show, then Noel is cooking. Therefore, Noel is not cooking.
is an
PY
3. An even number
is a number than can be written as
, where
integer. It is given that is an even number. Therefore,
is also even.
4. If Michelle wakes up early or does not sleep, then she will get to class on time. If
she commutes to school, then she will not get to class on time. Michelle did not
sleep. Therefore, she did not commute to school.
C
O
5. If lightning strikes a tree on the farm, then all the animals will make sounds of
horror. If thunder booms in the sky, then all the animals will run back to the stables.
Lightning struck a tree and all the animals ran back to the stables. Therefore, all
animals made sounds of horror and thunder boomed in the sky.
EP
E
7.
6. It is not the case that Joe plays both piano and violin. If Joe does not play piano
and he does not play violin, then he plays both clarinet and drums. If he plays
drums, then he plays the clarinet. Therefore, Fred plays clarinet.
8.
9.
293
10.
B. Prove each of the following statements.

is odd and
2. If
and
3. If
is even, then
are divisible by , then
is even, then
is even.
is even.
Topic Test 1
is logically equivalent to
a. the known logical equivalences

b. a truth table
using
C
O
1. Prove that
PY
1. If
2. Determine whether the following argument is valid using rules of inferences. If it is

invalid, give a counterexample
EP
E
Jim works at a paper company, but he does not get paper cuts. Either Jim gets a
paper cut, or he makes deliveries to his clients. Therefore, if he does not make
deliveries to his clients, he works at a paper company.
3. Determine whether the following argument is sound. Otherwise, explain why it is
not sound.
If the equation
has a real solution, then the solution set of the inequality
is the interval
. If 59 is divisible by 7, then the solution set of the
inequality
is not the interval
. Therefore, if the equation
has a real solution, then 59 is not divisible by 7.
4. Prove or disprove: the sum of any three consecutive integers is divisible by 3.
Topic Test 2
1. Write the following argument in symbols:
If the pot is hot, then Caleb cannot carry it. If Caleb was able to carry the pot, then he
can serve it on the table. Caleb was able to carry the pot. Therefore, the pot is not
hot and he can serve it on the table.
2. Prove that the proposition
If Jude wears a black shirt, then if he wears jeans then he will look like me.
294
and the proposition

If Jude wears a black shirt and jeans, then he will look like me.
are logically equivalent using known logical equivalences.
PY
3. Determine whether the following argument is valid using rules of inference.

Otherwise, provide a counterexample to show that the argument is invalid.
is not divisible by 3. (Hint: Argue using a
EP
E
C
O
4. Prove: If is an integer, then

contradiction).
295
5. (a) 320x 8x2 (0 x 10); gross

income for selling x bags
Lesson 1
1. k = 2,4
(b) 120x 8x2 (0 x 10); profit or

net income from selling x bags
3. V and W
5. 5. S(n) = 600n
7.
Lesson 4
1.
Lesson 2
1.
3.
-128
125
3
-4 is not in the domain of
3.
(b)
The marketing office gets twice
that amount which is P30,000
while the other offices receive
P15,000 each.
(a) 1
(b)
(a)
C
O
(a)
(b)
(c)
(d)
PY
(a) 3
(b)
(c) 12
(d) 3
5. N(5) 0.17 and N(15) 0.65
EP
E
Lesson 5
Lesson 3
1.
(a)
(b)
(c)
(d)
1. Rational function
3. None of these
5. None of these
Lesson 6
1.
(e)
3.The solution set is

.
3.
5. The solution set is given by
(e)
(f)
(g)
(h)
7. 6 liters
296
Lesson 7
1.
PY
(a)
(b)
C
O
5. The graph is shown at the right

(calculus is needed to determine the
maximum height. At the level of Grade
11, it suffices to check that the graph
approaches the horizontal asymptote,
and is above the x-axis.)
3.
(a)
(b)
The horizontal asymptote is y = 0. In

the long run, the concentration in the
bloodstream decreases and becomes
almost negligible.
EP
E
The lake seems to be able to support

only 1000 fishes.
Lesson 8
1. Horizontal asymptote:
Vertical asymptotes:
3. The x-intercept is . The y-intercept

is
. The vertical asymptotes are
The
horizontal
asymptote is y = 0. The domain is
. The function is
above the x-axis in the intervals 2 < x
< and x > 2. The function is below
the x-axis in the intervals x < 2 and
< x < 2. The graph is shown below.
The range is
Lesson 9
1.
or
3. Yes, the function is one-to-one
297
Lesson 10
5.
1.
7. x = 8
(a)
(b)
(c)
(d)
(e)
9.
Has an inverse
Has an inverse
Has no inverse
Has no inverse
Has no inverse
11. 14.536 days
Lesson 15
3.
1.
1. Domain:
.
.
3.
5. The function with restricted domain
L 0 is one-to-one. The inverse
function is
. If w = 0.4,
1
5
0
1
1
1/5
2
1/25
C
O
Range:
2
25
PY
x
f(x)
Lesson 11
EP
E
Lesson 12
then L = 100/9 11.1 cm.
1. y = 1,000(2)t/60; 1122
3. y = 300(1/2)t/1200; 168 g
Lesson 13
Domain: All real numbers; Range: All

positive real numbers; y-intercept: 1;
horizontal asymptote: y = 0
3.
x
f(x)
2
9
1
3
0
1
1
1/3
2
1/9
1. Exponential Equation
3. Transformation of an Exponential
Function
5. Exponential Inequality
Lesson 14
1. x = 0
3. x = 3
298
PY
Transformations: Shift the graph of

h(x) 1 unit to the right, reflect about the
x-axis, then stretch 2 units.
Lesson 16
1. Base function: f(x) = 3x
C
O
Domain: All real numbers; Range: All

positive real numbers; y-intercept: 1;
horizontal asymptote: y = 0

Range: (, 0)
y-intercept: (0, 2/3)
EP
E
5. [310 , 310]
Lesson 17
Transformation/s: Stretch the graph of

f(x) by 2 units.
9. 52 =
1. 1
3. 2
5.
7. 23 = 8
11. basic
Range: (0,) ;
Lesson 18
y-intercept: (0,2)
1. Logarithmic Inequality
3. Logarithmic Function
3. Base function: h(x) = 3x
5. Logarithmic Equation
299
Lesson 19
1. 2
x-intercept: (4, 0)
3. 0
3. The graph of H(x) is a shift of 1 unit

to the right and 2 units upward from
the graph of h(x) =
.
5. 3
Lesson 20
1.
+
PY
3.
5.
9.
0.4307
0.4642
C
O
7.
Domain: { x
|x>1}
Lesson 21
1. x = 12
3. x = 4 or x =
Lesson 24
EP
E
7. 15e0.9 6.10 lumens
x-intercept: (1.25, 0)
A.
1. 300
1. The graph of F(x) is a shift of 3 units

to the right from the graph of
f(x) =
.
3. 2.27%
Lesson 22
5. 60,000
B.
7. 11.840
9. 1,000
C.
11. P 39,000
13. P 33,750
15. 5 years
Domain: { x
|x>3}
17. 8.33%
19. P 90.909.09
300
Lesson 25
Lesson 27
A.
A.
1. 9,109.02
1. 4
3. 5,224.05
3. 0.10125 or 10.125%
5. 4,836.85
7. 23,551.13
5. 0.03 0r 3 %
9. 288,882.945
7. 0.004939 or 0.4939%
9. 0.121204 or 12.1204%
B.
13. P 141,856.71
11. 4
15. P 78,849.32
13. 0.003979 or 0.398%
PY
B.
11. P 116,640
C
O
17. P 36,787.10
15. 800
19. P 122,657.58
17. 0.055 or 5.5%

19. 2.34 periods
Lesson 26
2
EP
E
3. 6% or 0.06
1.
C.
21. j = 0.0301 or 3.01%

i(2) = 0.0602 or 6.02%
5. 1% or 0.01
23.
7. 16
n = 11.485 periods
t = 0.97 year or 11 months
9. 32,094.13
25. rs = 0.02015 or 2.015%
11. 10% or 0.1
13. P 52,186.20
15. P149,763.81
Lesson 28
17. (a) 281,789.94
A.
(b) 512,687.70
1. 152,793.63
( c ) 230,898.26
3. 201,867.57
19. Bank A: 216,756.59
5. 661.78
Bank B: 212,643.79
B.
7. 410,332.19
9. 1,006,512.21
301
C.
5. k=7
11. 3,979.13
13. 28,859.15
7.k=6
9. k=2
15. 3,391.91
B.
D.
17. P 459,803.80
1.
3.
5.
7.
9.
19. P 22,456.46
P=154,694.04
P=902,667.55
P=3,021,151.03
P=152,201.66
P=24,112.74
PY
Lesson 29
A.
Lesson 31
1. P152,770.90
3. P98,352.04
5. P 604.37
C
O
1. Dividend=20,250
3. Dividend per Share = 46
5. Stock yield ratio = 0.65
B.
7. P2,475
7. P 414,489.40
9. P518,526.46
C.
Lesson 32
1.
EP
E
11. P 3,980.64
Php 75
13. P 59,449.85
3. 2.8%
15. P3,448.11
5. Php 68
17. P 857,260.30
7. 12,200
19. Sunrise Investment: F = P

109,755.10 (larger)
9. Php 28
D.
9. P 2,052,510
Lesson 33
XYZ Investment: F = P
106,542.70
1. True
3. False
5. True
7. True
Lesson 30
Lesson 34
A.
1. Business Loan
1. k=8
3. Consumer Loan
3. k=3
5. Consumer Loan
302
Lesson 36
Lesson 35
1. This is not a proposition.
1. P1,225,043
3. P59,557.12
5. P960,000
7. P1,960,000
9. P2,700,000
11. P2,538,000
3. This is a compound proposition of

the form if
then
, where
:
Teds score is less than 50 and :
Ted will fail the course.
the form
or
, where
: It is
sunny in Manila and
: Its streets
are flooded.
13. P4,573.65
15. P13,290.89
PY
17. 156

the form if
then , where : , ,
and denote the lengths of the legs
and the hypotenuse of a right triangle
and :
.
19. P466,841.46
23. P326.12

the form not , where : -5 is a
negative number.
25. P2,984.70
27. A. Php100,00
EP
E
D. P23,701.79
B. Php31,547.08
C. P7,845.29
C
O
21. P5,795.48

the form if
then , where : If
Jerry receives a scholarship and :
he will go to college.

the form if [(not ) or (not
], then
(not
), where
: You run 1
kilometer a day,
: You eat
property, and
: You will be
healthy.
E. 0
303
Lesson 37
1.
: Mathematics is not easy to study.
: Logic is taken up in junior high school.
: There are more than three people in the meeting room at the moment.
2.
a.
c.
PY
e. If Rena eats at the Spanish restaurant, then if she does not order the restaurants
special paella then she has dessert.
3.
;
c.
C
O
a.
e. Pam works as a sales associate if and only if Bryan does not have a temporary
position in the office, and if Bryan does not have a temporary position in the office,
then Pam and Bryan are co-workers.
4.
c. False;
e. True
a. False ;
5.
and
must be false.
EP
E
a.
Lesson 38
1.
a.
T
T
F
F
c. Let
T
F
T
F
T
T
T
F
T
F
F
F
F
T
T
T
F
T
T
F
be the proposition
T
T
F
F
T
F
T
F
F
F
T
T
T
F
F
T
T
T
T
F
T
F
F
F
304
e. Let
denote
T
T
T
T
F
F
F
F
T
T
F
F
T
T
F
F
T
F
T
F
T
F
T
F
T
F
T
T
T
F
T
T
T
F
T
T
T
T
T
T
T
T
F
F
F
F
F
F
is a tautology.
2.
T
F
T
F
F
F
T
T
T
F
T
T
T
F
T
T
T
T
T
T
is a tautology.
Therefore,
EP
E
c. Let
C
O
a.
T
T
F
F
T
T
T
T
T
T
T
T
PY
This shows that
T
F
T
T
T
T
T
T
T
T
T
F
F
T
F
F
Hence,
T
T
T
T
F
F
F
F
Hence
F
T
T
F
T
T
T
F
T
F
F
F
F
T
T
T
is a tautology.
F
T
T
F
T
T
T
T
e. Let
T
F
F
T
T
T
F
F
T
T
F
F
T
F
T
F
T
F
T
F
T
F
F
F
T
F
F
F
T
T
T
T
T
F
F
F
T
T
T
T
T
T
F
F
T
T
T
T
T
F
T
F
T
T
T
T
T
F
F
F
T
T
T
T
T
T
T
T
is a tautology.
305
Lesson 39
1.
a. The given proposition is of the form
, where : The clothes are neatly
stacked and pressed and : The house help arrived today.
Converse
Contrapositive
If the house help did not arrive today, then the clothes are not
neatly stacked and pressed.
If the clothes are not neatly stacked and pressed, then the
house help did not arrive today.
PY
Inverse
If the house help arrived today, then the clothes are neatly
stacked and pressed.
Converse
Contrapositive
If he got the highest score in the class, then Nico studied

alone.
If he did not get the highest score in the class, then Nico did
not study alone.
If Nico did not study alone, then he did not get the highest
score in class.
Inverse
C
O
c. We can rewrite the given conditional as If Nico studied alone, then he got the
highest score in the class. This is now of the form
, where : Nico studied
alone and : He got the highest score in the class.
EP
E
e. The given proposition is of the form

, where : Mariah hit the high whistle
note and : The audience gave her a standing ovation.
Converse
Contrapositive
Inverse
If the audience gave her a standing ovation, then Mariah hit

the high whistle note.
If the audience did not give her a standing ovation, then
Mariah did not hit the high whistle note.
If Mariah did not hit the high whistle note, then the audience
did not give her a standing ovation.
2. The solutions presented below make use of known logical equivalences. Proofs
via truth tables will be left as an exercise to the student.
a. We can start with the right-hand side of the equivalence.
306
Reason
Given
De Morgans Law
Double Negation
c. We can start with the right-hand side of the equivalence.
PY
Reason
Given
De Morgans Law
Double Negation
Switcheroo
1.
C
O
Lesson 40
a. This is valid by the Law of Syllogism.

c. This is valid by Modus Tollens.
e. This is not a valid argument as it exhibits the Fallacy of the Converse.

g. This exhibits the affirmation of the disjunct, and so it is not a valid argument.
EP
E
2.
a. The argument is invalid, as it exemplifies the Fallacy of the Inverse. Hence, the
argument is unsound.
c. By Modus Tollens, the argument is valid. The first premise follows from the
definition of a rational number (i.e. a number is rational if it can be expressed as the
ratio of two integers). It can also be shown that there are no integers and that
satisfy
. Therefore, the argument satisfies the truth condition and is
hence sound.
e. This argument is invalid, by the Fallacy of the Inverse. Therefore, it is not sound.
Lesson 41
A.
1. Suppose
write
and are odd integers. Then for some integers

and
. Therefore,
and
, we can
Since
is an integer, then
is of the form
, where is an
integer. By Modus Ponens on the definition of odd numbers (the first premise),
is also an odd integer.
307
PY
3. Suppose is even. Then from the first premise, it follows that

for some
integer . Therefore,
. Since
is an integer, then
has the form
for some integer . Modus Ponens with the first premise leads to
the conclusion that
is even.
5. Let : Lightning strikes a tree on the farm, : All the animals will make sounds of
horror, : Thunder booms in the sky, and : all the animals will run back to the
stables.
It can be shown that a counterexample is formed when , , and are true and is
false. Hence, the argument is invalid.
7.
Proposition
Reason
1
Premise
2
(1), Simplification
3
(2), Addition Law
4
Premise
5
C
O
9.
Proposition
Reason
Premise
Premise
(2), Equivalence to Contraposition
Premise
Premise
(6), Modus Tollens
EP
E
1
2
3
4
5
6
7
8
B.
1. Suppose is odd and is even. Then we can write
some integers
and . Thus,
We note that since

definition of even numbers.
3. (By contradiction) Suppose
integer . Therefore,
is an integer, then
is odd. Then we can write
Note that since is an integer, then

which contradicts the premise that
and that is even.
and
for
is even, by the
for some
is also an integer. Therefore,

is odd,
is even. We conclude our assumption is wrong
308
Bibliography
Barnett, R.A., Ziegler, M.R., Byleen, K.E., & Sobecki, D. (2008). Precalculus (7th ed). New
York: McGraw Hill.
Bonds Basics Tutorial, Accessed from http://www.investopedia.com/university/bonds/
Clarke, J., Jandik, T., & Mandelker, G. (n.d.) The efficient markets hypothesis.
PY
Crauder, B., Evans, B., & Noell, A. (2008). Functions and change: A modeling approach to
college algebra and trigonometry. Boston: Houghton Mifflin.
De Laplante, K. (2013). What is a good argument? The truth condition
Schulz, K. (2015). The really big one. http://www.newyorker.com/magazine/2015/07/20/thereally-big-one
C
O
Stewart, J., Redlin, L., & Watson, S. (2012). Precalculus: Mathematics for calculus (6th ed).
Belmont, CA: Brooks/Cole, Cengage Learning.
Waner, C. & Costenoble, S.R. (2001). Supplementary chapters to accompany Finite
Mathematics, 2nd ed. Brooks/Cole.
(http://www.zweigmedia.com/RealWorld/logic/logicintro.html)
Weisstein, Eric W. "Catenary." From MathWorld--A Wolfram Web Resource.
EP
E
Young, C. (2012). College algebra (3rd ed). Hoboken, NJ: John Wiley & Sons.
https://www.youtube.com/watch?v=9mk8RWTsFFw
http://m.e-m-h.org/ClJM.pdf
http://newsinfo.inquirer.net/623749/philippines-welcomes-100-millionth-baby
http://www.investopedia.com/terms/e/efficientmarkethypothesis.asp
http://www.periodictable.com/Isotopes/030.71/index.p.full.html
http://www.periodictable.com/Isotopes/046.100/index.html
http://www.pse.com.ph/stockMarket/home.html
Investopedia staff (n.d.) Bond basics: What are bonds? Accessed from
http://www.investopedia.com/university/bonds/bonds1.asp
Stock Basics Tutorial, Accessed from http://www.investopedia.com/university/stocks/
http://mathworld.wolfram.com/Catenary.html
309

General Math LM For SHS

Uploaded by

Copyright:

Available Formats

General Math LM For SHS

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

General Math LM For SHS

Uploaded by

Copyright:

Available Formats

What is the purpose of the document?

What is the purpose of the document?

What topics are covered in the document?

What topics are covered in the document?

PY

This learning resource was collaboratively developed and

We value your feedback and recommendations.

Published by the Department of Education

Development Team of the General Mathematics Learners Material

Management Team of the General Mathematics Learners Material

Printed in the Philippines by Lexicon Press Inc.

3. Representing real-life situations using functions, including piecewise functions.

Definition: A function is a relation where each element in the domain is related to

Example 1. Which of the following relations are functions?

Example 2. Which of the following mapping diagrams represent functions?

The Vertical Line Test

is the greatest integer function.

Solution. The domains for the relations are as follows:

Functions as representations of real-life situations.

Functions can often be used to model real situations. Identifying an appropriate

Example 6. One hundred meters of fencing is available to enclose a rectangular

Solution. The cost of text messaging can be expressed by the piecewise

The water starts to boil (100C) after a total of 14,470 J.

This is a piecewise function because the temperature rise can be expressed as a

1. Is the relation {(0,0), (1,1), (2,4), (3,9), (

2. Which of the following diagram represents a relation that is NOT a function?

C. All diagrams, except for C, represent a function.

3. Can the graph of a circle be considered a function?

No, it cannot. A circle will fail the vertical line test.

4. Give the domain of

using set builder notation.

5. Contaminated water is subjected to a cleaning process. The concentration of

Solution. After 1 hour, the concentration of pollutants is (10)*(0.95). After 2

6. Squares of side x are cut from each corner of an 8 in x 5 in rectangle (see

V(x) = (8 2x)(5 2x)x = 40x 26x2 + 4x3.

Lesson 1 Supplementary Exercises

2. Which of the following statements represents a function?

in set builder notation.

Lesson 2: Evaluating Functions

Example 1. Evaluate the following functions at x = 1.5:

is the greatest integer function.

Solution. Substituting 1.5 for x in the functions above, we have

Solution. This is not possible because

4 is not in the domain of g(x) and 1 is

Example 3. Evaluate the following functions, where f and q are as defined in

where |x 5| means the absolute value of x 5.

2. For what values of x can we not evaluate the function

The domain of the function is given by

Solution. V(0) = 20 9.8(0) = 20 and V(1) = 20 9.8(1) = 10.2. These results

Lesson 2 Supplementary Exercises

, give the values of the following:

Lesson 3: Operations on Functions

1. Review: Operations on algebraic expressions

Addition and Subtraction:

Solution. The LCD of the two fractions is 15.

Example 2. Find the sum of

Solution. The LCD of the two fractions is

. Use cancellation of factors when